2022 (11) TMI 696

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....h service tax Department for providing services namely 'Outdoor Catering Services'. Revenue observed that there is difference of value between the Form 26AS and ST-3 return derived for the period 2015-16 and 2016-17 and accordingly documents and clarification was sought from the Appellant. Accordingly, show cause notice dated 30.12.2020 was issued to the Appellant demanding service tax of Rs. 58,35,451/- which was adjudicated by the Adjudicating authority under the Order-In-Original dated 07.01.2022 vide which the demand of service tax of Rs. 58,35,451/- along with interest and penalties was confirmed. Being aggrieved, the appeal was filed before Commissioner (Appeals) who vide impugned Order-In-Appeal has also upheld the Order-In-Original.....

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....dingly the Canteen Services provided within the factory to which the factories Act, 1948 applies and the provisions of canteen facility is mandatory is exempt irrespective of manner of running the canteen by any other person or by the company on its own. He placed reliance on the following judgments. (i) M/s Bhimas Hotels Pvt. Ltd. vs. Union of India - 2017 Tax Corp(ST) 26216 (HC-AP) (ii) ICS Foods Pvt. Ltd. vs. Commissioner of Service tax- (2018) TaxCorp(ST) 31933 (CESTAT- Allahabad) (iii) Shri Mohanan Nambisan, M/s Sodexo Facilities Management Services India Pvt. Ltd. vs. Commissioner of GST, Mumbai - (2021) Tax Corp (ST) 37371 (CESTAT- Mumbai) (iv) Sai Food Services vs. Commissioner of CGST (2020) TaxC....

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....pellant has been outsourced by various factories for supply of foods and beverages to the employees of factory as per the agreement between them. In this regard appellant claim the benefit of entry 19A of mega exemption Notification as applicable for the service provided during the period January 2013 to March 2016 and did not discharge the liability of Service tax being considered as exempted from payment of service tax by virtue of said Notification. 9. We observed that the taxable services in relation to provisions of 'Outdoor Caterer' is defined under Section 65 of the Finance Act 1994 and attracting payment of service tax on the provisions of such services. However we find that there is Exemption vide Entry 19 in the Notification No....

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....ot be restricted to the owner of the factory alone. Also the words used in the above notification are canteen maintained "in a factory' not "by the factory'. In the present case as evident from documents submitted by the appellant, since the appellant had provided the services of serving foods and maintaining the canteen located in the factories, the benefit of service tax exemption as per the above referred Notification should be available to it. Further we also find that the judgments relied by the Appellant also support their arguments. Hence, we hold that the services provided by the appellant to the factories clearly covered under the above Notification and exempted from payment of service tax. 10. In the present matter we also find....