Case Law Details
M/s. Mediacom Media India Pvt. Ltd. Vs C.C.G.S.T. (CESTAT Mumbai)
Observing that definition of input service was very wide and that the only condition precedent was that it should be the activity relating to business, CESTAT Mumbai has allowed Cenvat credit on outdoor catering services and rent-a-cab services for the period 2007-2010.
Rule 2(l) of the Cenvat Credit Rules, 2004 defines input service. This definition is couched in means and includes the expression. The definition “input service’ would mean, any service used by the provider of output service, or used by the manufacturer directly or indirectly in or in relation to the manufacture of final products and clearance of final products from the place of removal, and would include various services specified in the said definition.
In view of such broad definition, this is to be seen whether the authorities below are justified in rejecting the claim of Cenvat Credit raised by the Appellant. The definition of input service is very wide and it also includes various services used in relation to the business. The only condition precedent is that it should be the activity relating to business. The Appellant has enclosed the excel sheet alongwith Memo of Appeal giving details of Outdoor catering service alongwith the invoice numbers.
I have gone through same and am of the opinion that the services of outdoor catering are used by the appellant for its business activity during office hours and not as a personal or welfare measure for its employees nor it’s a perk/ perquisite provided by the appellant to its employees. The Appellant is also not recovering the cost of the same from its employees. The said service has been debited to P&L A/c of the Appellant, as a business expenses.
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