2015 (9) TMI 163 - AT - Service Tax

Outdoor catering service - Mandap Keeper service - Appellant Institute prepares cooked food as per the fixed menu and supplies the same to various schools for which they received payment at certain rates - appellant were also making available the space in their premises to various persons for their functions - Held that - Since the appellant are preparing mid day meals in their Institute and not in the schools where the meals are served are not involved in serving of the meals in any manner, in our view they are not covered by the definition of outdoor caterer and hence their activity of preparing and supplying meals for mid day scheme would not be covered by the definition of taxable service under Section 65(106(zzt). As regards the mandap keeper service alleged to have been provided by them during the period of dispute, we find that during each financial year during the period of dispute its turnover is well within the threshold limit of Notification No. 6/2005-ST and therefore they will be exempted from service tax. - Decided in favour of assessee.

Summary

Issues:
1. Taxability of outdoor catering service provided by an autonomous body under the Societies Act, 1860.
2. Taxability of space rental services under the Mandap Keeper Service.
3. Adjudication of service tax demand, interest, and penalties by the Commissioner.
4. Appeal against the order-in-original by the autonomous body.

Analysis:
1. The appellant, an autonomous body under the Societies Act, 1860, was providing mid-day meals to schools under the Government scheme. The Department alleged tax liability under outdoor catering service and Mandap Keeper Service. The Commissioner confirmed a service tax demand of Rs. 45,21,353 along with penalties. The appellant contended that they were not outdoor caterers as they prepared meals in their Institute, not at the schools, and were not involved in serving. The Tribunal agreed, stating the appellant did not fall under the definition of an "outdoor caterer" as per relevant sections, thus rejecting the tax liability.

2. Regarding the alleged Mandap Keeper Service, the Tribunal found the appellant's turnover within the exemption limit of Notification No. 6/2005-ST for each financial year during the dispute period. Consequently, the Tribunal ruled that the demand on account of this service was not sustainable. The impugned order was set aside, and the stay applications along with the appeals were allowed.

3. The Tribunal, after hearing both sides, waived the pre-deposit requirement and proceeded with the final disposal of the matter. The appellant's counsel argued against the tax liabilities imposed by the Commissioner, while the Department's representative defended the order.

4. In conclusion, the Tribunal found in favor of the appellant, ruling that their activities did not fall under the taxable categories of outdoor catering service or Mandap Keeper Service. The impugned order was deemed unsustainable, leading to its setting aside and allowing the appeals and stay applications.