Is it possible to pass TABLE as the output parameter in stored procedure

You can use OPENQUERY or OPENROWSET, as mentioned above, to make stored procedure results table like. There are some limitations with these methods:

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In OPENQUERY this-sql-server-instance can be used instead of a linked server name. It requires setting data accces server option:

exec sp_serveroption @server = 'PRODSVR\SQL2012' 
      ,@optname = 'DATA ACCESS' 
      ,@optvalue = 'TRUE' 

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