TaxTMI 
TaxTMI 
2019 (1) TMI 1309
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....by the Departmental Officers, it emerged that in respect of invoices where the bill amount shows the cost of the item and service charges separately, appellant had paid service tax only on the service charges collected by availing the benefit of Notification No. 12/2003-ST. So also, wherever the bill amount showed the total cost of sale without showing the cost of items and service charges separately, appellants had paid service tax on 50% of the cost by availing the benefit of Notification No. 01/2006-ST. 2.2 The Department took the view that supply of food is essential in rendering Outdoor Catering Service and is inseparable; hence, the benefit of Notification No. 12/2003-ST will not be applicable to appellant as far as "Outdoor Cateri....
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....reative Pvt. Ltd. Vs. C.C.T. - 2008 (9) S.T.R. 337 and hence, their practice of payment of sales tax on food items supplied and payment of service tax on the service charge collected from the customers is correct and legal and hence the same ought not to have been impugned by the Department without any rhyme or reason or cogent reasons; (ii) Even assuming that the above supply of foods is a composite contract involving both the supply of food articles and provision of service, their availment of the exemption provided under Notification No. 12/2003-ST in respect of food articles is also correct in as much as they have paid VAT on the food articles in proof of which they submitted documents specifically indicating the value of the food ar....
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....vident that none of the above activities was related to supply of food by the appellant, that too at the customer's end and hence, none of the above activities meet the two legal requirements of Section 65(76a) of the Finance Act viz., 'catering' and 'at a place other than his own'. Hence, the above charges are not liable to service tax under the taxable category of 'Outdoor Catering Service'; (vi) Appellants have, along with periodical ST-3 returns, submitted to the jurisdictional Range Officer the detailed work sheets showing the total billing amount, exempted abatement (claimed under Notification No. 12/2003-ST) and service charge collected by them and service tax payable and paid by them thereon. Hence, the allegation of suppression ....
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....ssion, consultancy fees and housekeeping and pantry management charges were unrelated to Outdoor Catering Service. 5. Heard both sides and have gone through the facts of the case. 6. We find that the issues in dispute are as under : (i) Whether the differential service tax of Rs. 47,81,657/- with interest demanded on entire value of food and service charges is correct or whether the service tax liability is required to be calculated only on the service charges; (ii) Whether the amount of commission, consultancy fees and housekeeping and pantry management charges received by the appellant are required to be included in the value of taxable service under "Outdoor Catering" category or otherwise. 7.1 Coming to the first dispute,....
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....hat outdoor catering consists of goods namely, the articles of food etc. which would constitute sale. Hence, the value of the food articles are liable for sales tax which the State Government is liable to impose. The other part of outdoor catering is the service rendered by the assessee in bringing the food articles to a place 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 Governm....
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....sekeeping and pantry management charges. Even before adjudication, appellants had informed the Department vide letter dated 17.07.2009, that "consultancy fee is the amount received for demonstration of international cuisine to the customers; that commission is the incentive received from M/s. Fresh & Honest for the facility provided to them at their sales counter; that housekeeping and pantry management charges are charges received for the maintenance of the canteen and pantry premises; that based on the bills raised on the customers, they are collecting and paying service tax on these charges; that they have paid the service tax on the amount collected under housekeeping and pantry management charges under Outdoor Caterer Service on which ....