TaxTMI 
TaxTMI 
2019 (7) TMI 164
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....door catering services availed prior to 01.04.2011 as well as after the said date. The details of show cause notice, demand etc. as furnished by the Ld. advocate is reproduced as under : S.NO. SCN NO. Original Demand proposed In Rs. Demand accepted on Employees contribution and Reversed along with interest In Rs. OIO No. and demand confirmed OIA - Impugned order 1. 02/2009 Dated 20.01.2009 (Pg.No.167) 3,41,491/- 68,298/- 19/2016 dated 20.10.2016 Credit of Rs. 68,298/- disallowed : Penalty Dropped (Pg.no.45) Recovery of credit and interest upheld. (Pg.no.33) Penalty of Rs. 68,298/- under Rule 15 (1) of CCR, 2004 imposed 2. 13/2009 dated 23.10.2009 (Pg.No.160) 4,27,673/- 85,435/- 20/2016 d....
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.... Rs. 13,708/- (Pg.No.47) Entire credit of Rs. 90,380/- directed to be recovered along with interest and equivalent Penalty of Rs. 90,380/- (Pg.No.33) Total 16,05,729/- 16,05,729/- 16,05,729/- 16,05,729/- 3.1 The ld. Counsel for appellants Ms.L.Mythili submitted that for the period prior to 01.04.2011, the appellant has already reversed employee‟s contribution and is contesting only the penalty imposed. Her arguments were mainly in respect of demand, interest and penalty confirmed for the period after 01.04.2011. She referred to the definition of "input service" for the period after 01.04.2011 and submitted that outdoor catering services are excluded from the definition of 'input....
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....elied upon the decision of jurisdictional High Court in Ganesan Builders Ltd. Vs CST Chennai - 2019 (20) G.S.T.L. 39 (Mad.) to argue that when services are provided in compliance of a statute, the credit is eligible. In the said decision though general insurance services are mentioned as excluded in clause (C) the Hon'ble High Court held that insurance services availed under Workmen Compensation Act, would not fall within the exclusion clause (C) of the definition. Such insurance services being availed by the manufacturer on compliance of statutory requirement was held to be eligible for credit. Similar view was taken in Rane TRW Steering System Ltd. - 2018 (2) TMI 1745 -Madras High Court wherein it was held that gardening service availed b....
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.... 4.3 With regard to the decision relied by Ld. Counsel for appellants in Mangalam Cement Ltd. (supra), Ld. A.R adverted to para 5.2 of the said judgement and submitted that the main ground that was analyzed in the said judgement is whether input services which are availed outside the premises of the factory is eligible for credit. Though the period involved shown in para-1 is from April 2010 to September 2011, the issue whether credit is eligible for outdoor catering services for the period post-01.04.2011 when availed for the personal use and consumption of employees was not discussed. When the employer provides food to the employees, it is definitely for personal use of the employees and therefore is not eligible for credit. 4.4 With r....
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.... training, computer networking, credit rating, share registry, security, business exhibition, legal services, inward transportation of inputs or capital goods and outward transportation upto the place of removal; but excludes services,- (A) specified in sub-clauses (p), (zn), (zzl), (zzm), (zzq), (zzzh) and (zzzza) of clause (105) of section 65 of the Finance Act (hereinafter referred as specified services), in so far as they are used for - (a) construction of a building or a civil structure or a part thereof; or (b) laying of foundation or making of structures for support of capital goods, except for the provision of one or more of the specified services; or (B) specified in sub-clauses (d), (o), (zo) and (zzzzj) of....
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.... is April 2010 to September 2011, the specific issue as to whether credit is eligible on 'outdoor catering services‟ for the period post-01.04.2011 when availed as per Factories Act, 1946 has not been analyzed in the said decision. In para 5.1, the Hon'ble High Court has noted the decision of the Tribunal wherein it was held that in view of changed legal position the outdoor catering services did not fall under the definition of 'input service' Thus, the judgment does not reflect any discussion with regard to specific issue as to whether outdoor catering service is eligible for credit after 01.04.2011, when availed as per statutory compliance. 9. The decisions in the case of Ganesan Builders (supra) and Rane TRW Steering System (su....