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TMI Blog2019 (7) TMI 164X X X X Extracts X X X X X X X X Extracts X X X X ..... if availed in compliance with statutory requirement - By judicial discipline, respectfully following the Tribunal‟s Larger Bench in Wipro Ltd., which is on the specific point, the credit is not eligible - demand along with interest in respect of outdoor catering services post-01.04.2011 is therefore upheld. Penalties - HELD THAT:- Being an interpretational issue, the penalty imposed prior to 01.04.2011 as well as post-01.04.2011 is unwarranted and requires to be set aside. The impugned orders are set aside to the extent of setting aside the penalties imposed entirely without disturbing the demand along with interest for the period after-01.04.2011 - appeal allowed in part. - Excise Appeal No.41920 of 2018, Excise Appeal No. 41921 of 2018, Excise Appeal No. 41923 of 2018, Excise Appeal No. 41924 of 2018, Excise Appeal No. 41925 of 2018 - FINAL ORDER NOs. 40887-40891/2019 - Dated:- 1-7-2019 - MS. SULEKHA BEEVI C.S., MEMBER (JUDICIAL) Ms. L. Mythili, Advocate for the Appellant Shri L. Nanda Kumar, AC (AR) for the Respondent ORDER The issue that arises for consideration in all these appeals being same they are disposed toge ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Recovery of credit and interest upheld. Penalty of ₹ 24,563/- under Rule 15 (1) of CCR, 2004 Upheld (Pg.no.33) 5. 1/2012 dated 18.01.2012 (Pg.No.142) 3,40,677/- 68,135/- 23/2016 dated 20.10.2016 Credit of ₹ 68,135/- disallowed : Penalty ₹ 68,135/- (Pg.no.46) OIO to the extent of ordering recovery of reversed amount of credit of ₹ 68,135/- and equivalent penalty, upheld for the period January 2011 to March 2011. For the period 1.4.2011 to 30.09.2011 entire credit disallowed and matter remanded for re-quantification by the lower authority. Equivalent Penalty of entire disallowed credit for 1.4.2011 to 30.09.2011 as determined on re-quantification imposed. (Pg.No.33) 6. 14/2012 dated 09.11.2012 (Pg.No.136) 90,382/- 13,708/- 24/2016 dated 20.10.2016 Penalty &# ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f personal use or consumption of an employee. 3.3 She relied upon the decision of jurisdictional High Court in Ganesan Builders Ltd. Vs CST Chennai - 2019 (20) G.S.T.L. 39 (Mad.) to argue that when services are provided in compliance of a statute, the credit is eligible. In the said decision though general insurance services are mentioned as excluded in clause (C) the Hon ble High Court held that insurance services availed under Workmen Compensation Act, would not fall within the exclusion clause (C) of the definition. Such insurance services being availed by the manufacturer on compliance of statutory requirement was held to be eligible for credit. Similar view was taken in Rane TRW Steering System Ltd. - 2018 (2) TMI 1745 -Madras High Court wherein it was held that gardening service availed by the assessee in compliance with statutory requirements of Pollution Control Board is eligible for credit even after the period 01.04.2011. The decision of the High Court in the case of CCE Udaipur Vs Mangalam Cement Ltd. 2018 (9) G.S.T.L. 17 (Raj.) was taken assistance by the Ld. Counsel to argue that the Hon ble High Court in the said decision has held that outdoor catering serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2018 (363) ELT 1111 (Tri.-LB). 5. Heard both sides. 6. The main issue that arises for consideration is whether the appellants are eligible for credit of the service tax paid on outdoor catering services w.e.f. 01.04.2011. The definition of input service‟ after 01.04.2011 reads as under : (1) input service means any service, - (i) used by a provider of taxable service for providing an output service; or (ii) used by a manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products upto the place of removal, and includes services used in relation to modernisation, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage upto the place of removal, procurement of inputs, accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, security, business exhibition, legal services, inward transportation of inputs or capital goods and outward transportation up ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it was held that in view of changed legal position the outdoor catering services did not fall under the definition of input service Thus, the judgment does not reflect any discussion with regard to specific issue as to whether outdoor catering service is eligible for credit after 01.04.2011, when availed as per statutory compliance. 9. The decisions in the case of Ganesan Builders (supra) and Rane TRW Steering System (supra) rendered by Hon ble jurisdictional High Court deal with services other than outdoor catering services. The decision of Larger Bench of the Tribunal in Wipro Ltd. (supra) has answered the specific issue as to whether credit is eligible on outdoor catering services for post-01.04.2011 and held that it is not eligible even if availed in compliance with statutory requirement. This Bench vide Final Order No.40858-40864/2019 dt. 24.06.2019 in a batch of cases had considered various arguments put forward by the assessees and thereafter following the decision in Wipro Ltd. (supra) by the Larger Bench (Tri.) held that credit is not eligible. By judicial discipline, respectfully following the Tribunal‟s Larger Bench in Wipro Ltd. (supra), which is on th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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