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2019 (7) TMI 164 - AT - Central ExciseCENVAT Credit - input services - outdoor catering services - services availed after 01.04.2011 - whether the appellants are eligible for credit of the service tax paid on outdoor catering services w.e.f. 01.04.2011? - penalties - HELD THAT:- The exclusion part (C) of the definition categorically states that when outdoor catering services are availed for personal use and consumption of an employee, the same does not qualify as ‘input service‟ and therefore not eligible for credit. The Larger Bench of the Tribunal in the case of M/S. WIPRO LTD. VERSUS THE COMMISSIONER OF CENTRAL EXCISE BANGALORE-III. [2018 (4) TMI 149 - CESTAT BANGALORE] had analyzed the point as to whether credit is eligible on outdoor catering services, if availed by the manufacturer in compliance of the Factories Act, 1946. The Larger Bench of the Tribunal answered the reference in favour of Revenue. The decision of Larger Bench of the Tribunal in Wipro Ltd. 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 - 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.
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