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TMI Blog2009 (8) TMI 479X X X X Extracts X X X X X X X X Extracts X X X X ..... e department as provider of services under the category of ‘Outdoor Catering Services’ and discharge service tax liability on the entire amounts collected towards handling charges, delivery charges, hi-lift charges, and bond handling charges. The appellants did not pay service tax on account of provision of meals/food items to the Airlines. In the light of the decision of LSG Sky Chefs (India) (P.) Ltd. v. CST 2009 -TMI - 33134 - CESTAT BANGLORE, held that- once the appellants paid sales tax on a portion of the value of the contract, then, simultaneously service tax could not be demanded as they were mutually exclusive. Thus, we vacate the impugned demands of service tax and penalties and allow these appeals. - ST/455 AND 455A OF 2009 - 26 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g of equipment, handling of waste, cabin service, and laundry services. The provision of food items is undertaken after entering into contracts with respective Airlines. The appellants are registered with the department as provider of services under the category of 'Outdoor Catering Services' and discharge service tax liability on the entire amounts collected towards handling charges, delivery charges, hi-lift charges, and bond handling charges. The appellants did not pay service tax on account of provision of meals/food items to the Airlines. 3. The impugned demands are confirmed against the appellants with reference to the value of meals/food items supplied to Airlines during the material periods. It is not disputed that the appellants ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cannot be levied on the same. In this connection, we have to take note of the decision of this Bench in the case of Idea Mobile Communications Ltd. v. CCE [2006] 5 STT 352 (Bang. - CESTAT) wherein the Tribunal has held that no service tax is payable when sales tax has already been paid. In the above decision, the Tribunal relied on the Apex Court's decision in the case of BSNL v. Union of India [2006] 3 STT 245...." (p. 444) The Tribunal had also relied on the judgment of the Hon'ble Apex Court in the case of Imagic Creative (P.) Ltd. v. CCT [2008] 12 STT 392 wherein, in Paragraph 28, their Lordships had observed as follows :— "28. Payments of service tax as also the VAT are mutually exclusive. Therefore, they should be held to be appli ..... X X X X Extracts X X X X X X X X Extracts X X X X
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