2018 (4) TMI 1508 - AT - Service Tax

Mandap keeper services - appellant also providing food and / or catering services separately for which separate bills were raised - liability of service tax on food and beverage charges - N/N. 12/2003-ST dated 20.06.2003 - Held that - the identical issue has come up before the Tribunal in the case of Narmada Jackson Hotel vs. CCE, Bhopal 2016 (2) TMI 872 - CESTAT NEW DELHI , where it was held that the appellant s claim that the entire charges relating to buffet dinner should be excluded from the assessing value in terms of N/N. 12/2003-ST is clearly not sustainable - demand upheld - appeal dismissed - decided against appellant-assessee.

Summary

Issues:
- Delay condonation in filing appeals
- Tax liability on food and beverage charges in hotel services

Delay Condonation:
The present appeals were filed against the order-in-appeal passed by the Commissioner (Appeals), GST, Customs & Central Excise, Bhopal. The appeals were delayed by 15 days and 17 days respectively. The delay was condoned based on the reasons mentioned in the applications, and the appeals were admitted for further proceedings.

Tax Liability on Food and Beverage Charges:
The appellants, engaged in the hotel business providing mandap keeper services and food/catering services, did not pay service tax on food and beverage charges as per Notification No. 12/2003-ST. The Department demanded service tax on these charges, leading to the filing of the present appeals. The Tribunal referred to a previous case involving similar issues and held that charges for buffet dinner, including food and related services, are covered under taxable services. The appellants' claim to exclude buffet dinner charges from assessable value was deemed unsustainable. However, the appellants were entitled to benefit from Notification No. 12/2001-ST when the cost of food was included in overall charges, allowing for an abatement of 40% on the gross value. Consequently, following the earlier order, the Tribunal confirmed the demand, and both appeals were dismissed.

This judgment clarifies the tax liability on food and beverage charges in hotel services, emphasizing the applicability of relevant notifications and the treatment of charges for buffet dinner. The decision provides guidance on the interpretation of taxable services in the context of hotel businesses offering catering services.