TaxTMI 
TaxTMI 
2019 (5) TMI 312
X X X X Extracts X X X X
X X X X Extracts X X X X
....set, we would like to make it clear that the provisions of both the CGST Act and the UKGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the UKGST Act. Brief facts of the case 2. In the instant case the Party vide their application under sub-section (1) of Section 97 of the CGST [SGST Act, 2017 sought an Advance Ruling on: (a) Whether supply of pure food items such as sweetmeats, namkeens, cold drink and other edible items from a sweetshop which also runs a restaurant is a transaction of supply of goods or a supply of service? (b) What is the nature and rate of tax applicable to the following items supplied from ground floor of a sweetshop in which restaurant is also located on the first floor and whether the applicant is entitled to claim benefit of input tax credit with respect to the same: (i) Sweetmeats, namkeens, dhokla, etc., commonly known as snacks, cold drinks, ice creams and other edible items; (ii) Ready to eat (partially or fully pre-cooked/packed) items supplied f....
X X X X Extracts X X X X
X X X X Extracts X X X X
....to bolster the argument the party relied upon the following judgments: (i) Delhi High Court in the case of T.T. Ltd v. Union of India [2017 (349) E.L.T. 130 (Del.)]; (ii) Nandhi Spinning Mills (P) Ltd. v. Commissioner of Central Excise, Salem [2018 (8) G.S.T.L. 103 (Mad.)]; (iii) HVPNL v. Mahavir [(2004) 10 SCC 86]; (iv) Tata Engineering & Locomotive Co. Ltd. v. Collector Central Excise, Pune [2006 (203) E.L.T. 360 (S.C.)] etc. 3. That mere supply of food items is a transaction of supply of goods only and concept of composite supply is not applicable. In order to bolster the argument the party relied upon the following judgments: (i) Cochin State Power & Light Corporation Ltd. v. State of Kerala [AIR 1965 SC 1688]; (ii) East India Hotels Ltd. v. Union of India [2001 taxmann.corp-2168 (SC)]; (iii) Madanlal Fakirchand Dudhelia v. Shree Changdeo Sugar Mills Ltd. [AIR 1962 SC 1543]; (iv) J.K. Cotton Spinning & Weaving Mill v. state of U.P. [AIR 1961 SC 1170 = 1997 (91) E.L.T. 34 (S.C.)]; (v) Nasiruddin v. State Transport Appellate Tribunal [AIR 1976 SSC 331]; (vi) State of M.P. v....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ruling passed by the UAAR and to declare the following :- 1. Supply of pure food items such as sweetmeats, namkeens, cold drinks, and other pre-cooked or pre-packed edible items from a sweetshop which also runs a restaurant is a transaction of supply of such individual goods. 2. The rate of lax on pure food items as mentioned above from a sweetshop shall be the individual rate of GST as may be applicable from time to time to such items - with benefit of input tax. 3. Any item or takeaway ordered or consumed within/ from restaurant shall be considered as supply of restaurant service on which rate of GST of restaurant service shall apply and benefit of input tax shall not be available. 2nd applicant's grounds of appeal 4. Aggrieved by the said order passed by the Authority for Advance Ruling for the State of Uttarakhand, the concerned jurisdictional Officer of CGST, Haldwani, has (filed the instant appeal, on the grounds that the decision and interpretation to treat combination of supply of service on the basis of nature of establishment i.e. principal supply by a restaurant and incidental or auxiliary supply by the mithai shop is faully and unten....
X X X X Extracts X X X X
X X X X Extracts X X X X
....onal hearing in both appeals memorandum on date 13-2-2019, delay condoned in main appeal, and the appeal is registered as DKGSTARA02/10/13-2-2019. 11. At the very outset, we find that the applicants are running sweetshop and a restaurant in two distinctly marked separate parts of the same premises and are also maintaining separate accounts as well as separate billings for the two types of business. The goods sold from the sweetshop are being billed exclusively as sweetshop sales whereas the goods supplied from the restaurant are billed under restaurant head. In such a situation, nature of the business establishment making supply of food, drinks and other articles for human consumption will not determine whether the same is a supply of goods or services but will depend on the constituents of each individual supply and whether same satisfies the conditions/ ingredients of a 'composite supply' or 'mixed supply', as defined under Section 2(30) and 2(74) of the CGST Act respectively. 12. 'Composite supply' is defined as "composite supply" means a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services o....