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2006 (2) TMI 53 - HC - Service TaxService Tax Catering service Petitioner rendered services of food and beverages to aircraft passengers on board, liable to get registered under 69 of Finance Act, 2004 and liable to service tax u/s 66 of Finance Act, 2004
Issues: Interpretation of the term "caterer" under the Finance Act, 1994 for the purpose of levying service tax.
In this case, a writ petition was filed seeking to quash an order by the Superintendent of Central Excise, which held that the petitioners, engaged in supplying food and beverages to airlines for in-flight services, are liable to be registered under Section 69 of the Finance Act, 2004, and to follow the provisions of the Act and Rules. The petitioners argued that they do not fall within the definition of "caterer" under Section 65(24) of the Finance Act as they are not providing catering services typically associated with events like marriages. The learned single Judge rejected this contention, holding that service tax could be levied on the petitioners. The petitioners appealed this decision. The High Court upheld the order of the Superintendent of Central Excise, stating that the petitioners, by supplying food and beverages to aircraft for in-flight services, fall within the definition of "caterer" as per Section 65(24) of the Finance Act, and are thus liable to pay service tax. The Court emphasized that the term "caterer" includes any person supplying food, beverages, or related items for any purpose or occasion, and that the petitioners' activities attract service tax liability under Section 66 of the Act. Therefore, the appeals were dismissed. This judgment clarifies that the term "caterer" under the Finance Act, 1994 is broad and encompasses any person supplying food, beverages, or related items, irrespective of the specific event or occasion. The Court emphasized that the provision applies to services provided anywhere, not limited to specific events like marriages. The decision reaffirms that supplying food and beverages to airlines for in-flight services falls within the ambit of catering services, attracting service tax liability. The judgment highlights the importance of interpreting statutory definitions broadly to ensure effective tax administration and compliance.
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