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TMI Blog2018 (4) TMI 724X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellant. VAT paid on sale of food should not be included in the value of service provided and billed separately. Appeal allowed - decided in favor of appellant. - ST/52060/2014-ST[DB] - 58793/2017 - Dated:- 15-12-2017 - MR. S.K. MOHANTY, MEMBER (JUDICIAL) AND MR. B. RAVICHANDRAN, MEMBER (TECHNICAL) Present for the Appellant: A.K Batra, AR Present for the Respondent: P. Juneja, (Advocate). PER: S.K. MOHANTY This appeal is directed against the impugned order dated 09.01.2014 passed by the Commissioner of Service Tax, (Adjudication), New Delhi. 2. Brief facts of the case are that the appellant is engaged in the business of providing party hall on rent and supplying food for the functions conducted in the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... filed by it. 3. The ld. Consultant appearing for the appellant submitted that the appellant is entitled for the benefit of Notification No. 12/2003 - ST in respect of the foods sold during the course of providing the party hall on rent. Thus, he contended that the appellant a s a service provider, was not require d to pay service tax on the value of food supplied by it. He also produced the sample copies of invoices, showing the hall rent and catering charges separately. He further submitted that since the appellant is registered with the Sales Tax Department and paid VAT on supply of food, the benefit of Notification No. 12/2003 dated 20.06.2003 should be available to the appellant. To support his stand that no Service Tax shall be levi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 03 - ST has also been extended to the appellant s in those cases. The relevant paragraph in the final order no. 56060/2016 dated 23.12.2016 of this Tribunal, in the case of Choki-Dhani Resorts Pvt. Ltd. is extracted herein below: - 4. Next we turn to the question whether the value of meals and beverages supplied to the participants of the conference is to be included in the value of the conventional services. It is on record that such charges along with the room rent have been indicated separately in the bills. It is also on record 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. VA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... judgment of the Hon ble Apex Court in BSNL v. Union of India [2006 (2) S.T.R. 161 (S.C.)] wherein the Court had held as follows: - 82. For the same reason the Centre cannot include the value of the SIM cards, if they are found ultimately to be goods, in the cost of the service. As was held by us in Gujarat Ambuja Cements Ltd. v. Union of India (2005) 4 S.C.C. 214, 228. This mutual exclusivity which has been reflected in Article 246(1) means that taxing entries must be construed so as to maintain exclusivity. Although generally speaking, liberal interpretation must be given to taxing entries, this would not bring within its purview a tax on subject matter which a fair reading of the entry does not cover. If in substance, the st ..... X X X X Extracts X X X X X X X X Extracts X X X X
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