Packaged food sold at MRP on trains treated as goods, supporting waiver of pre-deposit and stay of recovery.

Packaged food items sold separately on trains at MRP, such as biscuits, chips and cakes, were treated prima facie as sales of goods and not as part of outdoor catering service value. The Revenue did not rebut the appellant's contention that these items were distinct from meal services like breakfast, lunch or dinner. On that basis, the disputed differential demand was not shown to be recoverable at the interim stage, and the appellant obtained waiver of pre-deposit with stay of recovery pending the appeal.

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Issues: Whether, for purposes of waiver of pre-deposit, the value of packaged food items sold on trains at MRP could prima facie be treated as taxable service value under outdoor catering, and whether recovery of the disputed demand should be stayed pending appeal.

Analysis: The appellant's case that packaged items such as biscuits, chips and cakes were sold separately at MRP as goods, and not as part of meal service, was not rebutted by the Revenue. The activity of supplying packaged items was treated as distinct from serving breakfast, lunch or dinner, and the receipts from such sales were found, at least prima facie, to be sales and not service. On that basis, the disputed differential demand was not shown to be recoverable at the interim stage.

Conclusion: The appellant was granted waiver of pre-deposit and recovery of the disputed dues was stayed during pendency of the appeal.

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