TaxTMI 
TaxTMI 
2019 (1) TMI 559
X X X X Extracts X X X X
X X X X Extracts X X X X
....ices provided to employees and soil filling charges. The appellant accepted the objection in respect of credit availed on soil filling charges and reversed the credit. They defended the disallowance of credit on canteen services. After due process of law, the original authority confirmed the disallowance of credit on canteen services on the ground that the credit does not qualify as input services. The demand was confirmed along with interest and penalty of Rs. 32,402/- was imposed. In appeal, Commissioner (Appeals) upheld the same. Hence this appeal. 2. On behalf of the appellant, ld. counsel Shri Raghavan Ramabhadran submitted that the appellant is in appeal only against the disallowance of credit on canteen services / outdoor catering s....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ployee is excluded from the ambit of input service. Similarly, the life and health insurance services are also excluded from the definition when they are used primarily for consumption of the employees. Thus, the health insurance services and outdoor catering services stand on the same footing insofar as the exclusion clause is concerned. 2.2 He relied upon the decision of the jurisdictional High Court in the case of Ganesan Builders - 2018 VIL 475 MAD ST to argue that the Hon'ble Court had occasion to deal with the exclusion clause provided in the definition with effect from 1.4.2011 relating to insurance service. In the said case, the credit was denied by the authorities below on the ground that insurance service is intended for the empl....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ase of Ganesan Builders (supra). That since the Hon'ble High Court has drawn reference to this decision in the case of Ganesan Builders (supra), the very same ratio should be applicable to the case of outdoor catering services also. 2.4 The decision of the Hon'ble jurisdictional High Court in the case of Rane TRW Steering System Ltd. - 2018 (2) TMI 1745 - Madras High Court was also taken assistance by the ld. counsel to support his argument. In the said case, when the gardening services were availed by the assessee as per the pollution control norms/requirement, the credit was held to be eligible for the period after 1.4.2011. 2.5 The ld. counsel put forward an alternate plea with regard to penalty. In any case, the issue involved is inte....
X X X X Extracts X X X X
X X X X Extracts X X X X
....bmissions with regard to the statutory requirement for providing canteen facility to the employees within the factory premises. The definition of input services after 1.4.2011 contains exclusion clause wherein certain services are specifically excluded. For better appreciation, the definition of input service as it stands after 1.4.2011 is reproduced as under:- '(l) "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 fact....
X X X X Extracts X X X X
X X X X Extracts X X X X
....h person; or (C) such as those provided in relation to outdoor catering, beauty treatment, health services, cosmetic and plastic surgery, membership of a club, health and fitness centre, life insurance, health insurance and travel benefits extended to employees on vacation such as Leave or Home Travel Concession, when such services are used primarily for personal use or consumption of any employee; [Explanation: For the purpose of this clause, sales promotion includes, services by way of sale of dutiable goods on commission basis].' 5.1 Clause (C) of the above definition states that services such as those is provided in relation to outdoor catering when such services are used primarily for personal use or consumption of any employee is ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....employee." 5.2 The Tribunal thus noted that the outdoor catering services are availed primarily as per requirement of appellant in order to engage in manufacture of finished product and is not for personal consumption or personal use of employee. However, the said decision was referred to the Larger Bench and vide decision in the case of Wipro Ltd. (supra), the Larger Bench of Tribunal held that since outdoor catering services are specifically mentioned in the exclusion clause of the definition, credit is not eligible. 5.3 I do note that the Hon'ble High Court of Madras in the case of Ganesan Builders (supra) has analyzed the issue of eligibility of credit when there is a statutory requirement as per the labor laws to provide such facilit....