2017 (3) TMI 1450

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....ed by the canteen contractor to the employees of the appellants during the period April, 2006 to March, 2008 and April, 2008 to December, 2008 respectively. 2.2 Two show cause notices were issued on 23.12.2008 and 06.05.2009 respectively. In the show cause notice dtd. 23.12.2008 extended period was also invoked alleging that the appellants had wilfully suppressed the facts from the Department with intention to avail irregular cenvat credit. Penalty under Rule 15 of CCR, 2004 read with Section 11AC of the Central Excise Act, 1944 was proposed. In the second notice, penalty under Rule 15(3) of CCR, 2004 was proposed. In the adjudication, the adjudicating authority disallowed the credit of Rs. 1,45,929/- availed during period April, 2006 to....

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....d. 2010 (260) E.L.T. 369 (Bombay). He argued that the cost of outdoor catering services borne by the appellants is included in the assessable value of final products. He stated that this amount has admittedly not been recovered from the employees that were borne by the appellants. He further pleaded that the demand for the period April, 2006 to November, 2007 is time barred as the show cause notice was issued on 23.12.2008 and there was no suppression on the part of the appellants and they were under bonafide belief that cenvat credit of service tax paid on outdoor catering services was eligible. He stated that the instant case involved interpretation of complex provisions of law. He relied upon the following judgments: (a) Padmini....

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....lumn 8A of Form No. EA-3 that they are not contesting the demand of Rs. 2,13,104/- and interest of Rs. 1,08,675/- already deposited by them and they are contesting only the amount of Rs. 3,36,496/- and penalty of Rs. 2,13,104/-. The issue regarding input credit on outdoor catering services for the benefit of employees borne by the appellants is no longer res integra and has been settled in CCE, Nagpur vs. Ultratech Cements Ltd. 2010 (260) E.L.T. 369 (Bombay). It has been followed by numerous judgments of the Tribunal where this position has been reiterated. In view of the settled legal position, the appellants are entitled for input service credit of Rs. 3,36,496/-. 7. The Ld. Advocate has argued that there was no suppression on part of ....