Service Tax
TRT-2025-
Cestat Ahmedabad
Date:-15-11-22
In:-
Issue Favourable to Tax Payer ?:-
Order date – 15 November 2022
Facts –
- The appellant, Sai Pooja Enterprises is registered with service tax Department for providing services namely „Outdoor Catering Services‟.
- A show cause notice dated 30.12.2020 was issued to the Appellant on the ground 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.
- Adjudicating authority imposed service tax of Rs. 58,35,451/- along with interest and penalties.
- Aggrieved appellant had filed an appeal
Issue –
- Whether the service provided by the appellant to their customers (factory) is in nature and scope of outdoor catering services attracting the service tax, as claimed by the department or said service is in nature and scope as described at Sr. No. 19A of the Mega Exemption No. 25/2012 –ST dated 17.03.2012 as amended vide Notification No. 14/2013-ST dated 22.10.2013 and therefore exempted from payment of service tax?
Order –
- The Tribunal finds that the appellant 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.
- The Tribunal find that there is Exemption vide Entry 19 in the Notification No. 25/2012- ST dated 20.06.2012 that “service provided in relation to serving food or beverages by a restaurant, eating joint or a mess, other than those having the facility of air-conditioning or central air-heating in any part of the establishment, at any time during the year.
- On plain reading of entry 19A in the Notification dated 22.10.2013 it clearly reveals that the canteen maintained in a factory has been provided with the exemption from payment of service tax. The said Notification nowhere provided that canteen maintained by or run by the factory can only be considered for the benefits of such exemption.
- Out of total service tax demand of Rs. 58,35,451/- an amount of Rs. 57,35,420 is pertaining to the said entities only. Therefore to that extent only it drop the service tax demand along with interest and penalty. As regard the rest of service tax demand of Rs. 1,00,031/- it find that appellant agree for the said service tax liability and paid the same along with interest and penalty
- The appeal is partly allowed.
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