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TMI Blog2017 (1) TMI 38X X X X Extracts X X X X X X X X Extracts X X X X ..... rd that the respondent has been paying VAT to the State Government on sale of food and beverages to the customers as indicated in the bills raised by them. It is a settled position of law that two taxes i.e. VAT and Service Tax cannot be levied on the same value - the supply of food and beverages is not an activity ancillary to the primary activity of convention service - value of food items need not be added. Appeal dismissed - decide against Revenue. - ST/Cross/38/2011 along with Appeal No. 830/2010-CU(DB) - 56060/2016 - Dated:- 23-12-2016 - Shri S.K. Mohanty, Member (Judicial) And Shri V. Padmanabhan, Member (Technical) Shri Govind Dixit, DR for the appellant Shri Manish Gaur, Advocate Shri Rachit Jain, Advocate for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or payment of service tax under convention services. The Revenue s view is that the services for providing rooms as well as supply of food is part of the service rendered by the respondent in connection with the convention services. Accordingly, the service tax demand was raised. The organisors of the conference, no doubt, booked the rooms for the stay of the participants. However, the contention of the respondent is that the room rent is not part of the convention services. In the impugned order, the Commissioner (Appeals) has taken the view that providing of rooms on rent is a distinct, separate and independent activity, which has no relation to the convention service. He has further held that giving the room on rent cannot be considered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... food is an independent activity, whose value cannot be included in the value for convention service. This view also finds support in the decision of the Tribunal in the case of Daspalla Hotels Ltd. 2010 (18) STR 75 (T-B), wherein it is held by the Tribunal that the cost of food and beverages is excludible from the value for the purpose of charging service tax under convention service in terms of notification no.12/2003-ST. Para-4 of the said decision is reproduced below:- 4. In the instant case, the appellants have produced evidence to substantiate their claim that they have paid value added tax on the value of food and beverages sought to be taxed under 'convention service, vide the impugned order. In the light of the constitu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... )] :- Payments of service tax as also the VAT are mutually exclusive. Therefore, they should be held to be applicable having regard to the respective parameters of service tax and the sales tax as envisaged in a composite contract as contradistinguished from an indivisible contract. It may consist of different elements providing for attracting different nature of levy. It is, therefore, difficult to hold that in a case of this nature, sales tax would be payable on the value of the entire contract; irrespective of the element of service provided. These observations apply equally to exigibility of goods, supplied in the course of provision of service under a contract to provide service, as service. In the circumstances, we vacate ..... X X X X Extracts X X X X X X X X Extracts X X X X
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