2008 (8) TMI 243 - AT - Service Tax

Supply of food aboard flights - whether the cost of various food items sold by the appellants in the course of rendering the outdoor catering service , was includible in the taxable value - Tribunal has granted stay in cases involving similar sets of facts - appellants have prima facie case against the impugned demand stay granted

Summary

Issues:
1. Taxability of outdoor catering service for the period 10-9-2004 to September 2006.
2. Inclusion of the cost of food items in the taxable value.
3. Prima facie case against the impugned demand.
4. Waiver of pre-deposit and stay of recovery.
5. Out-of-turn disposal of the appeal.

Analysis:
1. The judgment addresses the taxability of outdoor catering service provided by the appellants from 10-9-2004 to September 2006. The service involved the supply of food aboard flights, and the major demand was towards service tax, education cess, CENVAT credit, and penalties. The issue was whether the cost of various food items sold in rendering the service should be included in the taxable value.

2. The Tribunal noted that the appellants were able to establish a prima facie case against the impugned demand. The appellants cited stay orders from the South Zonal Bench in similar cases, indicating a favorable position for the appellants. As a result, the Tribunal was satisfied with the prima facie case and decided on a waiver of pre-deposit and stay of recovery concerning the adjudged dues.

3. Another aspect addressed in the judgment was the request for out-of-turn disposal of the appeal due to the high stake involved in the case. After hearing both sides, the Tribunal allowed the application for out-of-turn disposal and directed the appeal to be posted for a specific date, showing consideration for the urgency and importance of the matter.

In conclusion, the judgment provided a detailed analysis of the taxability of the outdoor catering service, the inclusion of food item costs in the taxable value, the establishment of a prima facie case against the demand, the waiver of pre-deposit and stay of recovery, and the out-of-turn disposal of the appeal, ensuring a comprehensive and fair resolution of the legal issues involved.