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TMI Blog2015 (3) TMI 1011X X X X Extracts X X X X X X X X Extracts X X X X ..... month of October, 2008, the applicant stopped payment of service tax under the impression that such activity would not come within the service tax net. Show cause notice dated 21-10-2010, 14-12-2010 and 6-9-2011 were issued proposing demand of service tax for the period of Apr. '09 to Mar. '11 in respect of supply of coffee and tea in their customers premises. Adjudicating authority confirmed the demand of Service Tax amounting to Rs. 1,33,31,737/-along with interest and penalty under Outdoor Catering Service. 2. The learned Counsel on behalf of the applicant submits that service tax cannot be demanded on selling of the coffee to the clients as they are not rendering any service to the clients. In other words, they are selling the co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal in the case of Vodafone Essar Ltd. v. Commissioner of Service Tax, Mumbai reported in 2012 (27) S.T.R. 286 (Tri.-Mumbai) partly allowed the stay petition, where the sale and service both were involved. 4. After considering the submissions of both sides and on perusal of the records, the relevant provisions of Finance Act, 1994 are reproduced below :- Section 65(105)(zzt) of Finance Act, 1994 defines taxable service as, "any service provided or to be provided to any person, by an outdoor caterer." Section 65(76a) of the Finance Act, 1994 defines "outdoor caterer as, "Outdoor caterer" means a caterer engaged in providing services in connection with catering at a place other than his own, but including a place provided by wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for a period of one year (which includes ESI/PF/Bonus, Gratuity, insurance etc.). The labour cost will be added along with the monthly bills. 4. The Contractor will personally visit our premises regularly to ensure that the arrangements are working to the satisfaction of the representatives of the Company. 5. Cash transactions by any of your employees with our employees are strictly forbidden and in any case the company will not be responsible for the same." On perusal of the said agreement, prima facie, we find that the applicant was rendering service to supply coffee to the employees of the Company and particularly they appointed a pantry boy for such service. So, the contenti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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