service tax for canteen supply

[Ramakrishnan Seshadri]

Dear Sir,

We are are having 3 units manufacturing automobile parts.

For the workers and staff we have engaged a catering supply company for supplying food to our workers and staff.

The canteen suppliers will prepare food at his place and bring to our factory and serve the food.

As per

"Entry No. 19Aof Exemption Notification No. 25/2012-ST dated 20.06.2012, Air Conditioned or Air-heated Canteen maintained in a Factory are exempt from Service Tax w.e.f. 22.10.2013"

Now our question is whether service tax has to be charged for supply of food.

Give us opinion that service tax will be applicable or not. If not means shall we claim refund for the same for the service tax paid during the epriod November to till date.

Regards

S.Ramakrishnan..

AI Summary

Canteen exemption: factory canteen food services exempt from service tax when canteen falls under Factories Act and is air-conditioned
Exemption applies where services for serving food or beverages by a canteen maintained in premises qualifying as a factory under the Factories Act are exempt if the canteen has air conditioning or central air heating at any time during the year; outsourcing preparation to an external caterer does not automatically defeat the exemption, though the external caterer's separate supply may remain taxable. A statutory refund mechanism may be available for service tax paid where the canteen services qualify for exemption, subject to proof of factory status and meeting the air conditioning condition.