Restaurant Service & CENVAT credit - a dissertation

Kindly refer to Rule 2(e) of the CENVAT Credit rules, 2004, which states that a exempted service means a:
"...taxable service whose part of value is exempted on the condition that no credit of inputs and input services shall be taken"

For restaurant service, only input goods are exempted and not both inputs and input services, therefore, there is no need for construing restaurant service as exempt service. Thereby rule 6 is not applicable.

Same principles can be applied to works contract.

Ashish Koppa 14/07/2015