TaxTMI 
TaxTMI 
2011 (4) TMI 911
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....rat 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 upto 28-2-2006 and Notification No. 1/2006-ST, dated 1-3-2006, That the service tax was paid only on a part of the amount collected tha....
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....ssessing authority confirmed the demand of a sum of Rs. 56,32,167 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 applicable to the assessee. Accordin....
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.... designated by the client. The service so rendered by the assessee, which also includes the cost of transporting the food articles constitutes service. Therefore, to this extent alone, the assessee is liable for service tax and not for the entire cost received from the Airlines. Hence, there has to be a bifurcation with regard to the sale of goods and the service provided. However, it does not empower the State Government to levy tax on the entire amount mentioned in the bill. The entire sale price includes the transportation charges also and out of that sale price what is the service aspect and what is the sale aspect requires to be decided by the authorities. It is only thereafter that sales tax could be imposed on the cost of the food ar....