2015 (12) TMI 1154

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..... appellant availed input service credit on outdoor catering services during the impugned period. The appellant also recovered certain amount from the employees for providing subsidized food. Initially a show cause notice was issued to the appellant to deny input service credit on outdoor catering services holding that same is not an input service as per Rule 2 of the Cenvat Credit Rules, 2004. During the course of the adjudication relying on the decision of Hon'ble High Court of Bombay in the case of C.C.E. Nagpur Vs. Ultratech Cement Ltd. -2010 (20) S.T.R. 577 (Bom), the adjudicating authority confirmed the demand to the extent of the amount recovered by the appellant for providing subsidized food to their employees. Interest is also demand .....

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..... ked. Consequently, demands are required to be confirmed by invoking extended period of limitation and penalty is imposable. She further submits that in the light of the decision in the case of UOI Vs. Indswift Laboratories Ltd. 2011 (265) E.L.T. 0003 (SC). Therefore interest is payable. 5. Heard the parties. Considered the submissions. 6. In this case it is admitted position as decided by the Honble High Court of Bombay in the case of Ultratech Cement Ltd. (Supra) vide order dated 25.10.2010, the appellant is not entitled to take Cenvat Credit on the amount recovered from the employees for providing subsidized food under the category of outdoor catering services. Before that there was a decision of the larger bench of this Tribunal in th .....

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..... basis of net amount recovered from the employees towards subsidized food. In fact, the said amount is considered as gross amount inclusive of all taxes. Therefore, the calculation of the actual amount on Cenvat Credit is also required to be computed. In these circumstances, I set aside the impugned order and remand the matter back to the Adjudicating Authority only for quantification purpose and for verification of the fact whether the amount which is to be reversed by the appellant have been reversed and unutilized. If same has been utilized the liability of the interest has to be confirmed against the appellant. With these terms appeal is disposed off. (Dictated and pronounced in the open court)
Case laws, Decisions, Judgements, Orde .....

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