Even after amendment made in the definition of ‘Input services’ w.e.f April 1, 2011, Cenvat credit on Outdoor Catering services used in relation to business activities continues to be eligible when the cost is borne by the Company and not recovered from the employees.
In the instant case, Hindustan Coca Cola Beverages Pvt. Ltd. (the Appellant) availed Cenvat credit on Outdoor Catering services for the period December, 2011 to December, 2012, which was denied by the Lower Authorities and the Ld. Commissioner (Appeals) on the ground that the definition of Input services given under Rule 2(l) of the Cenvat Credit Rules, 2004 (the Credit Rules) has been amended w.e.f April 1, 2011 to specifically exclude any Input service used for personal use or consumption by any employee.
Being aggrieved, the Appellant preferred an appeal before the Hon’ble CESTAT, Mumbai, and relying upon Circular D.O.F No. 334/3/2011-TRU dated February 28, 2011 and Circular No. 943/4/2011-CX dated April 29, 2011, submitted the following:
The Hon’ble CESTAT, Mumbai observed the following:
Therefore, on the basis of above, the Hon’ble Tribunal held that since in the instant case, Outdoor Catering services are used by the Appellant in relation to their business activities, cost of which is borne by the Appellant and not by the employees, they are rightly entitled to claim Cenvat credit of the same.