Stay abreast with the latest developments in the professional domain along with in-depth analysis through the monthly BCA Journal. Get access to an engaging library of researched publications from the BCAS stable.
Learn MoreLorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book.
Learn MoreLorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book.
Learn MoreA voluntary organisation established on 6th July 1949, BCAS has presently more than 9,000 members from all over the country. BCAS is a principle-centered and learning-oriented organisation promoting quality service and excellence in the profession of Chartered Accountancy.
Learn MoreLorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book.
Learn MoreLorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book.
Learn More
Facts:
Revenue denied CENVAT credit on the following input services:
a) Group medical insurance to employees and family members,
b) Insurance of directors and officers when they are on foreign tour,
c) Outdoor catering services i.e. canteen facility provided to employees within factory premises as required under Factories Act, 1948
Held:
The definition of input service is very wide as observed by the Mumbai High Court in case of Coca Cola India (P) Ltd. vs. Commissioner (2009) (242 ELT 168). The High Court in this case had provided a test for establishing whether the activity relates to business or not. If the cost of such services forms part of the assessable value on which excise duty is paid, CENVAT credit is allowed. Therefore, the matter was remanded back to the original authority with a comment to follow the above judgment. CENVAT credit on outdoor catering services stands allowed since the issue is decided earlier by the Tribunal for respondent itself.
Comment:
The definition of “input service” in the CENVAT Credit Rules, 2004 has been amended whereby its scope is restricted with effect from 01/04/2011. Therefore, the above interpretation will hold good only till 31/03/2011.