PARAMOUNT COMMUNICATION LTD. Vs. CCE

JUDGEMENT

(1.) THE dispute in the present appeal relates to the availability of credit of Service Tax paid on the outdoor catering service availed by the appellant in their factory canteen for the purpose of providing food to their employees. The impugned orders stands passed in de novo proceedings when the matter was earlier remanded by the Tribunal. From the impugned order of Commissioner (Appeals), it is seen that he has not followed the Larger Bench decision in the case of CCE v. GTC Industries Ltd. - : 2008 (12) S.T.R. 468 (Tri. -LB) by observing that the reasons for holding the outdoor catering services as input service in the said decision was that the assessee in that case, having more workers than 250, was under a statutory obligation to provide canteen services. He has further held that whereas in the present case number of employees is less than 250 the appellant is under no statutory legal obligation to provide canteen services.

(2.) THE issue is also decided by the Hon'ble Karnataka High Court in the case of CCE, Bangalore v. Stanzen Toyotetsu India (P) Ltd. - : 2011 (23) S.T.R. 444 (Kar.) and by the Hon'ble Karnataka High Court decision in the case of CCE v. ACE Designers Ltd. - : 2012 (26) S.T.R. 193 (Kar.). In fact in the same appellant's case Tribunal by following the above decisions held in favour of assessee and allowed their appeal reported as Paramount Communication Ltd. v. CCE - : 2013 (287) E.L.T. 70 (Tri. -Del.). By following the same, I set aside the impugned order and allow the appeal with consequential relief to the appellant. Stay petition as also appeal get disposed of in above manner.