TaxTMI 
TaxTMI 
2018 (8) TMI 327
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....ng or Coaching Centre Service". During the course of audit, it was noticed that they had availed cenvat credit of service tax paid on certain input services namely outdoor catering service, restaurant service and short term accommodation service, which according to the department was not eligible for credit. 3. Show cause notice was issued proposing to disallow the credit and to recover the same alongwith interest and for imposing penalties. After due process of law, the original authority confirmed the demand, interest and imposed penalties. In appeal, the Commissioner (Appeals) reduced the penalty to 10% of service tax, but however upheld the demand of interest. Aggrieved, the appellants are now before the tribunal. 4. On behalf of ....
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....ing the course. Food and refreshments are also provided to the candidates as well as the instructors in these hotels during the course period. As the outdoor catering services are not provided to employees and as these are not for personal consumption of employees, the services would not fall within the exclusion clause of the definition. He referred to the Larger Bench decision of the Tribunal in the case of M/s.Wipro Ltd. Vs The CCE Bangalore-III reported in 2018 (4) TMI 149 - CESTAT Bangalore and argued that the said decision is not applicable to the present case, as the food in the present case is consumed by the candidates and not by the employees. Only when the food is given to the employees, it would fall within the exclusion clause.....
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....onsideration is whether the appellant is eligible for Cenvat credit on food / restaurant services / outdoor catering services and short term accommodation services. The Ld.Consultant has been at pains to argue that food is provided to the candidates who attend the coaching and not for the employees and therefore would not fall under the exclusion clause of definition of input services. For better appreciation, the relevant portion of definition of input service after 1/4/2011 is reproduced as under :- Rule 2 (1) "Input Service" means any service, (i) used by a provider of output service for providing an output service; or (ii) used by the manufacturer, whether directly or indirectly, in or in relation to the manuf....
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....e or acceptable. The Larger Bench has categorically held that the outdoor catering services is not eligible for credit after 1/4/2011. Suppose the manufacturer is conducting a welding course within the factory premises and students who are not employees attend the course, the outdoor catering services provided to such students would not be eligible for credit as per the decision of the Larger Bench. I therefore hold that appellant is not eligible for credit on outdoor catering services. However, since the issue has travelled to the Larger Bench and there were divergent views prior to that, I am of the view that the penalty on this count requires to be set aside which I hereby do. 10. The other issue is regarding short term accommodation ....