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TMI Blog2011 (4) TMI 210X X X X Extracts X X X X X X X X Extracts X X X X ..... rities - Therefore, the Court declared that a contract for out door catering is a composite contract which fails under sub-clause (f) of clause (29A) of article 366 of the Constitution of India and service tax is payable on service aspect and sales tax is payable on deemed sales aspect and it is not an indivisible contract - Decided in favour of the assessee - CEA NO. 103 OF 2009 - - - Dated:- 20-4-2011 - N. KUMAR AND RAVI MALIMATH, JJ. N.R. Bhaskar for the Appellant. V.S. Shahajahan and Renuka Prasad for the Respondent. JUDGMENT Ravi Malimath, J. This appeal is filed by the revenue being aggrieved by the common order passed by the Tribunal against the very same assessee holding that in an outdoor catering servic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. 4. The assessee contended that they are eligible for exemption under Notification No. 12/2003, dated 20-6-2003 in respect of the value of food and beverages served to the Airlines on payment of VAT. That in a transaction of sale of food the element of service in connection with catering was only to the extent of handling and loading of food and beverages on the aircraft. Hence they had paid service tax to that extent. The assessing authority came to the conclusion that in terms of section 67 of the Act the assessees are liable to pay service tax on the gross amount realised from the various Airlines on account ol outdoor catering service provided by them. That section 67 clearly prescribes that the value of taxable service shall be the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Govt. of India to have uniformity in valuation and liability to tax issued a notification No. 20/04, dated 10-9-2004 read with Notification No. 1/2006, dated 1-3-2006 specifically for Outdoor Catering Service by allowing an abatement of 50 per cent of the gross value towards cost of food beverages supplied during the course of rendering the taxable service?" Therefore it is clear that the question that arises for consideration in this appeal is as to whether the assessee are liable to pay service tax for the services rendered by him as out door caterers. 6. The identical question with regard to the liability of the assessee towards service tax so far as service rendered by them with regard to the out door catering is concerned, came ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arges also and out of that sale price what is the service aspect and what is the sale aspect requires to be decided by the authorities. It is only thereafter that sales tax could be imposed on the cost to the food articles arrived at and the remaining extent including transportation is to be treated as liable for service tax. Therefore, the Court declared that a contract for out door catering is a composite contract which fails under sub-clause (f) of clause (29A) of article 366 of the Constitution of India and service tax is payable on service aspect and sales tax is payable on deemed sales aspect and it is not an indivisible contract". 8. The facts involved in the present case are identical to the facts that arose in the Writ Appeal Nos ..... X X X X Extracts X X X X X X X X Extracts X X X X
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