2021 (9) TMI 1293

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....free of cost), the appellant collects some portion of the total amount of food price to be paid to the 'Canteen Service Provider' from the employees, by deducting it from the salary of the employees. The appellant has submitted that it is only facilitating the supply of food to the employees, which is a statutory requirement under the Factories Act, 1948, and is recovering only employee's share towards actual expenditure incurred in connection with the food supply, without making any profit. 2. In respect of the aforesaid nature of transaction, the appellant filed an application before the Gujarat Authority for Advance Ruling (herein after referred to as the 'GAAR') wherein it raised the following question for advance ruling :- "Whether ....

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....sidized value of food. 4.3 The appellant has submitted that this activity does not fall within the scope of 'supply' as the same is not in the course or furtherance of its business. It has also submitted that the Canteen Service Provider is charging Goods and Services Tax on supply of food and the appellant is not availing Input Tax Credit, therefore the canteen service provided by the appellant should not be construed as 'service' and no Goods and Services Tax should be payable. 4.4 The appellant has also referred to Sr. No. 19 of Notification No. 25/2012-Service Tax dated 20.06.2012. FINDINGS :- 5. We have considered the submissions made by the appellant in the appeal filed by them as well as at the time of personal hearing, Ruling gi....

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....d to employees by the Canteen Service Provider. The appellant neither keeps any margin in this activity of collecting employees' portion of amount nor makes any separate supply to the employees. Furthermore, it is not the appellant who is supplying the foodstuff or canteen service to its employees, but it is a third party who is supplying the foodstuff or canteen service to the employees of the appellant. In our view, as the appellant is not carrying out the said activity of collecting employees' portion of amount to be paid to the Canteen Service Provider, for any consideration, such transactions are without involving any 'supply' from the appellant to its employees and is therefore not leviable to Goods and Services Tax. 8. We observe th....