Separate billing for catering and mandap services supports exemption under Notification No. 12/2003-ST, blocking value clubbing.

Separate charges for mandap keeper service and catering service meant the conditions of Notification No. 12/2003-ST were satisfied. Because the food items were sold independently to users of the mandap and were not part of a composite taxable value, their value could not be clubbed with the mandap keeper service for service tax purposes. The Tribunal also noted that the assessee's earlier case had already allowed the same exemption on the same notification. The service tax demand based on clubbing the value of food with mandap keeper service was therefore unsustainable.

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Issues: Whether the assessee was entitled to the benefit of Notification No. 12/2003-ST dated 20.06.2003 in respect of amounts separately charged for catering service, and whether the value of food items could be clubbed with the taxable value of mandap keeper service for service tax purposes.

Analysis: The assessee had charged separately for mandap keeper service and for catering service. The record showed that food was sold separately to persons using the mandap facilities, and the requirements of the exemption notification stood complied with. Once separate charges for the two services were established, the value of food items sold could not be included in the taxable value of mandap keeper service. The Tribunal also noted that the assessee's own earlier case had already granted the same benefit under the same notification.

Conclusion: The assessee was entitled to the benefit of Notification No. 12/2003-ST, and the service tax demand by clubbing the value of food items with mandap keeper service was unsustainable.

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