2011 (4) TMI 210

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.... Supreme Court in Bharat Sanchar Nigam Ltd. v. Union of India [2006] 3 STT 245. 2. The assessee is engaged in the activity of providing catering service falling under out door caterer taxable under section 65 (76a) of the Finance Act, 1994. On scrutiny of the records by the Anti Evasion Wing of the Commissionerate, it was revealed that the assessee had not made payment of service tax on the basis of the correct value of the taxable services. The service tax liability had to be paid on the basis of the gross amount collected from the clients after deducting the abatement as per Notification dated 10-9-2004 bearing No. 20/04-ST up to 28-2-2006 and Notification No. 1/2006-ST, dated 1-3-2006. That the service tax was paid only on a part of t....

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....0-6-2003 is legally unsustainable. Accordingly, the assessing authority confirmed the demand along with interest and penalty. Aggrieved by the same, the assessee preferred an appeal to the Tribunal. The Tribunal held that the assessee is entitled to the benefit of Notification No. 12/2003, That there is inclusion of value of goods sold by the assessee and in view of the separate invoices raised for the food and beverages having been supplied and having been paid for separately, the food supplied should be treated as sale of goods and hence no service tax can be levied to that extent. By relying on the Judgment of the Hon'ble Supreme Court in the case of Bharat Sanchar Nigam Ltd. (supra) the benefit of Notification 12/2003 was held applicabl....

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....y the order dated 18-4-2011. By a detailed consideration and relying on various Supreme Court Judgments, the Division Bench of this Court came to the conclusion that the out door catering contract is a contract for service by virtue of sub-clause (f) of clause 29(a) of Article 366 of the Constitution of India which has to be treated as composite contract and the State Legislature is competent to levy the sales tax on the sale aspect only namely, the value of the food articles. 7. The Division Bench held that out door catering consists of goods namely, the articles of food etc., which would constitute sale. Hence, the value of the food articles are liable for sales tax which the State Government is liable to impose. The other part of out ....