TaxTMI 
TaxTMI 
2017 (4) TMI 860
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....ed to the workers of the petitioner, the petitioner has come up with the present writ petition. 2. Heard Dr. M.V.K. Moorthy, learned counsel for the petitioner, and Mr. B. Narayana Reddy, learned Assistant Solicitor General, appearing for the respondents. 3. The petitioner is a hotel engaged both in the business of boarding and lodging. The petitioner also has a restaurant. But, the present dispute is confined only to the value of the food supplied by the petitioner to the workers employed by them. 4. By the order in original impugned in the writ petition, the 2nd respondent came to the conclusion that the food supplied by the management of the petitioner to its own workers at a subsidized rate, tantamounted to a service, taxable under S....
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....t for a consideration. 6. But, the definition of the expression service under Section 65B (44) positively excludes certain activities from the purview of the definition. Clause (a) of sub-section (44) of Section 65B excludes any activity, which constitutes merely a transfer of title in goods or immovable property, by way of sale, gift or in any other manner from the purview of the definition. Similarly, any transfer, delivery or supply of any goods, which is deemed to be a sale within the meaning of Clause (29A) of Article 366 of the Constitution, is also excluded from the definition of the expression service. 7. Under a Notification bearing No.25/2012-Service Tax, dated 20.06.2012, which came into force with effect from 01.07.2012, certa....
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....ng a dichotomy, which does not exist. 10. As a matter of fact, any supply of subsidized food to the workers by the management of a Company, has to be seen as part of the pay package that the workers have negotiated with the employer. Under the Factories Act, 1948 and even under the Industrial Disputes Act, 1947, the expression wages would include within its purview, anything that is supplied at a subsidized rate. Section 2(rr) of the Industrial Disputes Act, 1947 defines wages to mean, all remuneration capable of being expressed in terms of money, which would, if the terms of employment, express or implied, were fulfilled, be payable to a workman in respect of his employment. Interestingly, the definition of the expression wages under Sect....