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2019 (6) TMI 1203 - AT - Central ExciseCENVAT Credit - input services - Outdoor Catering Services - period post 01.04.2011, when amendment in the definition of input services was carried out - situation post introduction of negative list regime after 01.07.2012 - authorities below have disallowed the credit availed on Outdoor Catering Services stating the reason that these services are for personal consumption and excluded as per the definition of ‘input service’. HELD THAT:- In the present case, the disputed period is entirely after 01.07.2012. The definition of ‘input service’ underwent an amendment with effect from 01.04.2011, which has already been reproduced in the contentions of the appellant as above. In Clause (A) of the said exclusions, it does not mention Sub-Clause (zzt) which is for taxable services provided under Outdoor Catering Services. The Ld. Counsels are correct in their assertion that the specific exclusion contained in Clause (A) does not take within its ambit the Outdoor Catering Services - However, the exclusion is brought forth in Clause (C) wherein it is stated that services provided in relation to outdoor catering are excluded when such services are used primarily for personal use or consumption of any employee. In the case of M/s. Wipro Ltd. [2018 (4) TMI 149 - CESTAT BANGALORE], the Larger Bench took the view that after 01.04.2011, Outdoor Catering Services were excluded from the definition of input services - Though I am persuaded by the arguments that food supply services to a factory under the Factories Act cannot be considered as services for personal consumption of employees, I am bound by the decision of the Larger Bench of the Tribunal in the case of M/s. Wipro Ltd. - credit is ineligible Penalties - HELD THAT:- The situation being interpretational one, the penalties imposed are unwarranted - penalties set aside. The impugned orders are modified to the extent of setting aside the penalties imposed without disturbing the demand or interest thereon - appeal allowed in part.
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