2018 (8) TMI 1286

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.... are engaged in the business of providing "in flight catering services" to various airlines; it was construed by the lower authorities that during the period September, 2004 to March, 2008, respondent had not discharged the service tax liability on the gross value charged by them to such airlines. A show cause notice was issued on dated 04.07.2008. Respondent contested the show cause notice on merits, origin that the supplies made by them to airlines were cost of materials and handling charges and they have specifically mentioned in the invoices the amounts attributable to handling charges and towards the supplies made. The lower authorities after following due process of law, confirmed the demands raised along with interest and imposed equ....

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....R 344] which has been upheld by the Hon'ble High Court of Karnataka as reported at [2013 (31) STR 528] is correct. He would also submit same view is expressed in Department's appeal by Hon'ble High Court of Karnataka in the case of LSG Sky Chef India Pvt. Ltd., [2012 (27) STR (5)]. He takes us through the Provisions of APVAT and submits that the tax payable by them on the supply of the goods and after claiming the abatement is as per the provisions of Section 3(9) of APVAT Act, 2005. 6. On careful consideration of submissions made and the specific invoices produced before us we do find, respondent herein is raising bill/invoice on the airlines wherein amounts are charged separately for the supply of food items and beverages and handling ....

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....contract/transaction containing both the elements i.e. goods and services and a price charged for supply of foods by itself contains the values for both the materials and services". He held that the appellants had paid VAT only on the 60% of the value of food items and the remaining 40% value pertains to service element. Further, he denied the benefit of exemption Notification No. 12/2003 - ST to the appellants on the ground that they had not put forth any claim of maintaining or having documentary proof specifically indicating the value of services involved. 7. There is no dispute that the appellants activity is covered under the category of "Outdoor Catering Services". The adjudicating authority had demanded services tax on 40% of the ....