2012 (9) TMI 896

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nment Advocate, For the Respondent : G. Sarangan, Senior Counsel with Rabhinathan and M. Thirumalesh ORDER :- The respondent/assessee filed returns for the assessment year 2005-06 to August 2009. The sale bills of the assessee disclose the collection of service charges at 10% on the food and beverages supplied to the customers. It is the contention of the assessee before the AO that the s....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....f food and bevearages. The State aggrieved by the order of the Appellate Tribunal has filed these revision petitions. 2. The substantial questions of law have been formulated in the memorandum of revision petitions.      1. In the facts and circumstances of the case, whether the Tribunal is justified in giving a finding that service charges collected at 10% on food and be....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....he waiters and appropriation of 50% of amount towards damage to the crockeries and discarded linen etc. The sale bill is also produced. It is the submission of the assessee that the service charges at 10% levied is in respect of food and beverages supplied in the banquet hall and restaurant. The said amount so collected in lieu of tips from the customers and the same was distributed to the waiters....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....icles, the assessee should issue a separate bill. The bill also does not disclose that the part of service charges is payable towards the tips. The payment of tip is normally optional, but the assessee should not compulsorily enforce on the customers. On considering the submission made at the Bar, the order of the Appellate Tribunal is set aside and the matter is remanded to the AO for fresh sc....