Outdoor catering taxability turns on admitted service, supporting evidence, and documentary proof for exemption claims; limited remand on food concession.

Outdoor catering service was treated as taxable where the assessee admitted supplying food and snacks at customers' premises and witness evidence supported that position; the circular-based plea that it was only delivery of food was rejected. Exemption under Notification No. 12/03-S.T. also failed because the records did not show the value of goods and materials sold while rendering the service. By contrast, the claim for the 50% concession under Notification No. 20/2004-S.T. required fresh verification of the actual food supplied from the bills, so that issue was remanded for reconsideration.

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Issues: (i) Whether the appellant's activity of supplying food and snacks at customers' premises constituted taxable outdoor catering service and whether exemption under the circular and Notification No. 12/03-S.T. was available; (ii) whether the appellant was entitled to the benefit of Notification No. 20/2004-S.T. in respect of the 50% exemption for food supplied.

Issue (i): Whether the appellant's activity of supplying food and snacks at customers' premises constituted taxable outdoor catering service and whether exemption under the circular and Notification No. 12/03-S.T. was available.

Analysis: The appellant had itself admitted that it was engaged in outdoor catering, and the customer witnesses confirmed that food and snacks were supplied at their premises against bills and cheque payments. On those facts, the plea that the activity was merely delivery of food items and therefore outside service tax under the departmental circular was not accepted. The claim under Notification No. 12/03-S.T. also failed because the documents did not indicate the value of goods and materials sold while providing the taxable service.

Conclusion: The appellant was not entitled to succeed on this issue; the demand was sustained on this aspect.

Issue (ii): Whether the appellant was entitled to the benefit of Notification No. 20/2004-S.T. in respect of the 50% exemption for food supplied.

Analysis: The denial of the exemption had been based on the view that the word "food" meant only a substantial and satisfying meal. However, the bills showed supply of meals such as breakfast, lunch and dinner, and the entitlement had to be verified from the appellant's bills. Since the factual basis required fresh examination, the issue was not finally negatived and was sent back for reconsideration.

Conclusion: The denial of the benefit under Notification No. 20/2004-S.T. was set aside and the matter was remanded to the adjudicating authority for fresh decision.

Final Conclusion: The assessee succeeded only on the limited question of reconsideration of the 50% exemption claim, while the challenge to taxability and the claim under Notification No. 12/03-S.T. failed.

Ratio Decidendi: An outdoor catering activity is taxable where the assessee admits rendering catering service and the surrounding evidence supports supply of food at customers' premises, and exemption claims must be supported by the prescribed documentation; where entitlement to a notification-based concession depends on the actual nature of food supplied, the factual issue may be remanded for fresh verification.

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