At, Customs Excise Service Tax Appellate Tribunal West Zonal Bench At Ahmedabad
By, THE HONORABLE JUSTICE: DR. D.M. MISRA
For Petitioner: Yash Arya, Chartered Accountant And For Respondents: S.N. Gohil, Authorised Representative
1. Heard both sides.
2. Thisisanappeal filed against OIA No. VAP-EXCUS-000-APP-316-13-14 dated 01.10.2013 passed by Commissioner (Appeals) of Central Excise, Customs and Service Tax, Vapi.
3. Ld. Advocate submits that they are engaged in the manufacture of excisable goods and availed CENVAT credit of Rs. 2,42,267/- on Outdoor Catering Service (Canteen Service) during the period October 2008 to June 2011. The issue is covered by the decision of the Hon'ble Bombay High Court in the case of Commissioner of Central Excise, Nagpur vs. Ultratech Cement Ltd : 2010 (260) E.L.T. 369 (Bom.) and the decision of the Hon'ble Gujarat High Court in the case of Commissioner of Central Excise, Ahmedabad-I vs. Ferromatic Milacron India Ltd : 2011 (21) S.T.R. 8 (Guj.). The Ld. Advocate agrees to reverse the proportionate credit of Rs. 80,000/- attributable to the cost recovered in providing Canteen Service to the employees, within four weeks from the date of communication of this order.
4. Ld. AR for the Revenue reiterated the findings of the Ld. Commissioner (Appeals).
5. I find that in principle CENVAT credit on Outdoor Catering Service (Canteen Service) provided to the employees is held to be admissible by the Hon'ble Gujarat High Court in Ferromatic Milacron India Ltd.s case (supra). The proportionate credit recovered from the employees needs to be reversed. For
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this limited purpose, the matter is remitted to the Adjudicating Authority to ascertain the proportionate credit. Appeal disposed of accordingly.