Whether assesse is entitled to the CENVAT Credit in respect of catering services received when consideration is recovered from the beneficiaries/assessee's own employees?

Cerna Electric   Lighting   Products    India   (p.) Ltd.  vs. Commissioner     of Central   Excise [2014]  48 taxrnann.com     232 (Gujarat)

 

 

 

FACTS:

The  appellant,  a  manufacturer   availed  CENVAT  Credit of entire  payment  made to the canteen  contractor  even though the amount is recovered from its employees/ beneficiaries  of canteen service. The demand was confirmed under  Rule  14 of the  CCR  in respect  of the amount  recovered.  Both Appellate  authorities confirmed the demand

 

HELD:

The   appellant   is  not   entitled   for   CENVAT   Credit   if the   amount    is   recovered   from   the   beneficiaries/its own employees   while   running   the   canteen.   Further,. it was  held that  concurrent  finding  of facts  by both the authorities  below, that full details were not furnished  and entire  amount  was  recovered,  justifies  the invocation  of extended  period of limitation