TaxTMI 
TaxTMI 
2018 (4) TMI 724
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....ith Service Tax Department under the taxable category of Mandap Keeper Service. The appellant was paying Service Tax on the services rendered by it, after availing benefit of abatement @40% under Notification No. 21/97 - ST dated 26.06.1997, as amended under Mandap Keeper Service and under Notification No. 20/2004 - ST as amended under Outdoor Caterer's Service. However, W.E.F. 01.05.2007, the appellant started paying service tax under the taxable category of Renting of Immovable Property Service. Further, the appellant stopped paying the service tax on activity of catering, which they undertook in their own party hall. On the above backdrop, the Department initiated show cause proceedings against the appellant, which culminated into the ad....
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....nt has relied on the decision of this Tribunal in the case of Daspalla Hotels Ltd. Vs. C.C.E., Visakhapatnam, 2010 (18) S.T.R. 75 (Tri. - Bang.), Sky Gourmet Pvt. Ltd. Vs. C.S.T., Bangalore, 2009 (14) S.T.R. 777 (Tri. - Bang.), Grand Ashok Vs. CST, Bangalore, 2009 (15) S.T.R. 344 (Tri. - Bang.), LSG Sky Chef India Pvt. Ltd. Vs. Commr. of Service Tax, Bangalore, 2010 (18) S.T.R. 37 (Tri. - Bang.) and CCE, Jaipur - I Vs. Chokhi-Dhani Resorts Pvt. Ltd., Final Order No. 5 6060/2016 in ST Appeal No. 830/2010 - CU(DB). 4. On the other hand, the ld. DR appearing for the Revenue reiterated the findings recorded in the impugned order. 5. Heard both sides. 6. On perusal of the sample copy of invoices produced by the Id. Consultant for the appella....
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....In the impugned order, the Commissioner (Appeals) has recorded the findings that the supply of food and beverages is not an activity ancillary to the primary activity of convention service. We uphold the view of the Commissioner (Appeals) in this regard. The payment of VAT indicates that supply of food is an independent activity, whose value cannot be included in the value for convention service. This view also finds support in the decision of the Tribunal in the case of Daspalla Hotels Ltd. - 2010 (18) S.T.R. 75 (T - B), wherein it is held by the Tribunal that the cost of food and beverages is excludible from the value for the purpose of charging service tax under convention service in terms of notification no.12/2003 - ST. Para - 4 of the....
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.... will not by any principle of interpretation allow a statute not covered by it to intrude upon this field." We are fortified in our above finding by the following observations of the Hon'ble Apex Court in the case of Imagic Creative Pvt. Ltd. v. Commissioner of Comml. Taxes [2008 (9) S.T.R. 337 (S.C.)]: - "Payments of service tax as also the VAT are mutually exclusive. Therefore, they should be held to be applicable having regard to the respective parameters of service tax and the sales tax as envisaged in a composite contract as contradistinguished from an indivisible contract. It may consist of different elements providing for attracting different nature of levy. It is, therefore, difficult to hold that in a case of this nature, sal....