Out-door catering services used primarily for personal use or consumption of any employee is not ‘Input Service’: SC

Toyota Kirloskar Motor Private Limited Vs Commissioner of Central Tax (Supreme Court of India)

We have heard Mr. V. Sridharan, learned Senior Counsel appearing for the petitioner.

The statutory provision – Rule 2(1) defining ‘Input Service’ post 01.04.2011 is very clear and the out-door catering services when such services are used primarily for personal use or consumption of any employee is held to be excluded from the definition of ‘Input Service’.

In that view of the matter, it cannot be said that the High Court has committed any error in denying the input tax credit and holding that such a service is excluded from input service.

We are in complete agreement with the view taken by the High Court. Hence, the Special Leave Petitions stand dismissed.