2011 (4) TMI 451

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....tio of the Supreme Court in Bharat Sanchar Nigam Ltd. v. Union of India [2006] 3 STT 245. Since the assessee is the same and a common order has been passed by the Tribunal, both the appeals are disposed off by a common order. 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 dat....

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....ble service shall be the gross amount charged by the service provider. Further the exemption claimed by the assessee under Notification 12/2003 dated 20-6-2003 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 relyi....

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....ised so by the Govt. of India to have uniformity in valuation and liability to tax issued a notification No. 20/04 dated 10-9-2004 read with Notification No. 1/2006 dated 1-3-2006 specifically for Outdoor Catering Service by allowing an abatement of 50 per cent of the gross value towards cost of food/beverages supplied during the course of rendering the taxable service?    3.  Whether, the CESTAT was justified in extending the benefit of Notification No. 12/2003-ST dated 20-6-2003 to the outdoor catering service provider ?" Therefore it is clear that the question that arises for consideration in these appeals is as to whether the assessees are liable to pay service tax for the services rendered by them as out door cater....