Order Date – 20 September 2022

Facts –

• The Appellant,M/s. Intimate Fashions (I) Pvt. Ltd., is engaged in the manufacture of women’s inner garments. They are registered with the Central Excise Department and avail the facility of cenvat credit on taxes paid for various input services.
• The appellant has availed cenvat credit on outdoor catering services for the periods January 2010 to August 2010 and September 2010 to March 2011 for the amounts of Rs.4,45,329/- and Rs.4,68,131/- respectively.
• The authorities issued two Show Cause notices dated 18/01/2011 and dated 12/09/2011 against the appellant, proposing to disallow the credit for both the abovementioned periods and recovery of the same along with interest and for imposing penalty.
• Aggrieved, an appeal was filed before the Tribunal.

Issues –

• Whether availing cenvat credit on outdoor catering services is eligible as per the definition of input service?

Order –

• The present Tribunal while relying on the hon'ble Supreme Court case Toyota Kirloskar Motor Pvt. Ltd. Vs. CCT - 2021, held that the credit availed for the period 01/04/2011 to 30/04/2011, which is part of the Show Cause Notice dated 12.9.2011, is not eligible for credit as it pertains to the period after the amendment in the definition of input services.
• The Tribunal also held that the credit availed for the period January 2010 to August 2010 and September 2010 to March 2011, would be eligible as the definition of input service prior to 1.4.2011 included such services.
• Furthermore, the Tribunal while relying on the cases M/s Sharda Motor Industries Ltd. Vs. CCE - 2019 and Chennai Container Terminal Pvt. Ltd. Vs. CCE, 2022 Chennai, held that the cenvat credit availed on outdoor catering services for the abovementioned periods is eligible.
• Hence, the appeal is partly allowed.