TaxTMI 
TaxTMI 
2019 (2) TMI 876
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....ng provided by them to the passengers travelling in Rajdhani/Shatabdi trains and the other mail/express trains. The appellant was discharging its Service Tax liability, after availing the benefit of Notification No.1/2006-ST dated 01.03.2006, which provides for abatement of 50% of Service Tax value, subject to fulfillment of certain conditions enumerated therein. 2. During the scrutiny of their records for the period 2006-07 to 2009-10, it was found that the value of the services as reflected in their profit & loss account is different than the value of services shown in their six monthly ST-3 returns. On being questioned, the appellant vide their letter dated 15.02.2010 clarified that catering income also includes sale of readymade pack....
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....ical amount. Hence the present appeal. 4. Learned Advocate appearing on behalf of the appellant has drawn our attention to the agreements entered into between them and M/s. IRCTC for providing 'outdoor catering services'. The scope of the work in terms of the bid document annexed with the contract is the catering services and menu for breakfast, lunch and dinner etc.. The same also prescribes the sectorwise rates subject to revision by IRCTC. Along with providing 'outdoor catering services' the appellant has also been provided a general license to sell the various readymade confectionary items like potato chips, biscuits, cakes etc. on MRP price printed on the same. No cooking of food and supplying the same is involved in the said sal....
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....eceives only the actual amount of the said newspapers from the Railways, the cost of the same cannot be included in the cost of the catering services. We note that there is no dispute about the factual position. The adjudicating authority has not rebutted the above factual and contractual contents of the agreement entered into between the appellant and the Railways. The appellants are not making any money from the supply of the said newspapers to the passengers from whom the Railways have already retrieved the cost at the time of supply of the ticket. We further note that in any case and in any view of the matter the supply of newspapers is not covered by the definition of 'outdoor caterers' is given in Section 65(76a) of the Finance Act....
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....g relatable to food or eating experiences. Newspapers supplied by the appellant on behalf of the railways can by no stretch of imagination, be considered to be in the same line of food or food articles. As such we find no merits in the above interpretation extended by the adjudicating authority and hold that the cost of the newspapers cannot form part of value of 'catering services'. 6. The second issue relates to the sale of packed confectionary items to the passengers. The learned Advocate explains that the said items are not served to each and every passenger, but are being sold by them to the passengers, who ask for the same. The same are being sold at the MRP printed on the items and they are paying VAT on the said items. The sale o....