Separate food and beverage billing does not secure full exclusion from taxable value in mandap keeper and hotel services.

Charges for food, beverage, catering and related ancillary facilities recovered alongside mandap keeper or hotel services were not wholly excludible from assessable value under Notification No. 12/2003-ST. The Tribunal followed its earlier view that such elements formed part of the taxable service when separately billed in connection with the main service, so the claim for complete exclusion failed. It also noted that, where the cost of food was included in the overall recovery and the factual conditions were satisfied, only the limited benefit of the applicable abatement notification could be considered. The service tax demand was therefore confirmed.

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Issues: Whether the food and beverage charges raised separately in connection with mandap keeper and hotel services were excludible from service tax under Notification No. 12/2003-ST, and whether the demand of service tax on such charges was sustainable.

Analysis: The appeals concerned separate billing for food and beverage charges alongside hotel and mandap keeper services. The Tribunal followed its earlier decision on the same issue, holding that catering and related services, including the ancillary facilities associated with buffet dinner, formed part of the taxable service and could not be fully excluded from the assessable value under Notification No. 12/2003-ST. It was also noted that where the cost of food formed part of the overall charges recovered, the benefit of Notification No. 12/2001-ST as amended could be considered for abatement, but the claim for complete exclusion was not sustainable.

Conclusion: The demand of service tax was confirmed and the appeals were dismissed.

Final Conclusion: Separate billing for food and beverage charges did not justify complete exclusion from taxable value under the claimed exemption, and the service tax demand was upheld.

Ratio Decidendi: Charges for catering and related ancillary services, when recovered in connection with mandap keeper or similar taxable services, are not wholly excludible from assessable value under Notification No. 12/2003-ST; only the limited benefit available under the applicable abatement notification may be considered where the factual conditions are met.

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