TaxTMI 
TaxTMI 
TaxTMI 
2009 (1) TMI 169
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....r-in-Original No. 88/2007 dated 18.09.2007, passed by the Commissioner of Service Tax, Bangalore. Appeal No. 390/2007 filed by M/s. Sky Gourmet Pvt. Ltd. 2. We heard both the sides in the matter. The assessee, M/s. Sky Gourmet Catering Pvt. Ltd. are engaged in the sale and supply of the food, beverage and dry stores to the airlines. They had obtained service tax registration under the classification of 'Outdoor Catering Services' under Section 65 (76a) of the Finance Act, 1994. Revenue proceeded against the assessee on the ground that they had not paid service tax on the gross amount received from M/s. Kingfisher Airlines for in-flight catering from November 2005 to May 2006. Consequently, proceedings were initiated for short levy....
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.... one for the cost of food/beverage supplied and the other towards the service portion with the purpose of foregoing the abatement of 50% available, under Notification No. 20/2004-ST dated 10.9.2004 and Notification No. 1/2006-ST dated 1.3.2006 and instead avail the benefit of Notification No. 12/2003-ST dated 20.6.2003. On behalf of the appellants, the following points were urged: (i) Notification No. 12/2003-ST dated 20.6.2003 exempts the value of all the taxable services, as is equal to the value of goods and materials sold by the service provider to the recipient of the service from the service tax leviable thereon under Section 66 of the Finance Act, 1994 subject to the condition that there is documentary proof specifically indicating ....
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....ering contracts are to be isolated and subjected to sales tax. (vi) Reliance was also placed on the decision of the Hon'ble Supreme Court in the case of BSNL Vs. Union of India [2006 (2) STR 161 (S.C.)] wherein it was held that the value of the goods cannot be included in the value of the service and that they are mutually exclusive. Further, the amendment of the Article 366 (29A) especially allows the specific composite contracts, namely Works Contracts, higher purchase contracts, catering contracts by legal fiction to be divisible contracts where the sale element could be isolated and be subjected to tax. In view of the above, there was a prayer to allow the appeal. 3. The learned SDR reiterated the impugned order. She stated that i....
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....han in pursuance of a contract, of property in any goods for cash, deferred payment or other valuable consideration. (b) a tax on the transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract. (c) a tax on the delivery of goods on hire-purchase or any system of payment of instalments. (d) a tax on the transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration. (e) a tax on the supply of goods by any unincorporated association or body of persons to a member thereof for cash, deferred payment or other valuable consideration. (f) a tax on the supply, by way of or as part of any service o....
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....clusion of the value of the goods sold during their rendering of service. In this case, it is very clear in view of the separate invoices raised that the food/beverages supplied have been separately paid for. There is documentary evidence for the cost of such goods sold during their rendering of service. In view of the Article 366 (29A) read with provisions of the Karnataka VAT Act, 2005. It is very clear that in this 'Outdoor Catering Service', the food supplied should be treated as 'sale of goods' and for the sale of goods, VAT has already been paid. Therefore this cannot be charged to the service tax in view of the ratio of the Supreme Court's decision in M/s. BSNL case. Further the benefit of Notification No. 12/2003....