9911796707
TMI Blog2018 (5) TMI 1181X X X X Extracts X X X X X X X X Extracts X X X X ..... licant to charge GST @ 12%, therefore, the applicant has requested for advance ruling as to whether rate of tax on their supplies made to the recipient would be 12% or 18%. The applicant has submitted copy of agreement entered into between them and the client. 3.1 The applicant, vide letter dated 18.01.2018 submitted that applicant is industrial canteen contractor providing catering services to manufacturing industries which is statutory canteen maintained under law and their service recipient has asked to charge GST @ 5% on service based on clarification delivered by Tax Research Unit, Department of Revenue vide Circular issued from F. No. 354/03/2018 (Circular No. 28/02/2018-GST dated 08.01.2018). 3.2 The applicant further submitted that the definition of 'Outdoor Caterer' under Finance Act, 1994 was as under "'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 way of tenancy or otherwise by the person receiving such services." 3.3 The applicant further submitted that viewing the above clarification, it is a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tax (Rate) dated 28 06.2017, the activity carried out by the applicant appears to be in the nature of service provided in canteen and other similar establishments and also classifiable under Chapter Heading 996333 and GST @ rate of 18% is applicable on that service. It is further submitted that the question raised by the applicant in the authority of advance ruling is not covered in the category of advance ruling as the category of service is very much clear in the Chapter Note 996333. 5. We have considered the submissions made by the applicant in their application for advance ruling and further submission vide letter dated 18.01.2018 as well as submissions made at the time of personal hearing. We have also considered the information and views of the Goods & Services Tax and Central Excise Commissionerate, Kutch (Gandhidham). 6. Issue involved in this case is regarding appropriate rate of Goods and Services Tax applicable on the services provided by the applicant. 7.1 As per the agreement entered into between the applicant and the client, the applicant is required to perform the activity of running of canteen and its total affairs, including supply of Sna ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vided in the unit of accommodation (given on rent for stay) like furniture, air conditioner, refrigerators or any other amenities, but without excluding any discount offered on the published charges for such unit. 2.5 Provided that credit of input tax charged on goods and services used in supplying the service has not been taken [Please refer to Explanation no. (iv)].] (ii) ..... 6 - (iii)..... 9 -] (iv) * * * * * * *] (v) Supply, by way of or as part of any service or in any other manner whatsoever in outdoor catering wherein goods, being food or any other article for human consumption or any drink (whether or not alcoholic liquor for human consumption), as a part of such outdoor catering and such supply or service is for cash, deferred payment or other valuable consideration. 9 - (vi)...... 9 - (vii)..... 9 - (viii)..... 14 - (ix)..... 9 - 7.3 Government of India, Ministry of Finance, Department of Revenue (Tax Research Unit), vide Circular No. 28/02/2018-GST dated 08.1.2018, has issued clarifications regarding GST on College Hostel Mess Fees as follows :- "2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... places of their customers who have in house canteens at their factories. The applicant has also submitted that applicant normally charges GST @ 18% classifying the services under heading 9963 as outdoor catering. 9.1 In erstwhile Service Tax regime, a similar issue was decided by Hon'ble High Court of Allahabad in the case of Indian Coffee Workers' Co-Op. Society Ltd. Vs. CCE & ST, Allhabad [2014 (34) S.T.R. 546 (All.)], wherein it was held as follows - 8. Analyzing the provisions of clause (24) of Section 65 of the Finance Act, 1994, in order to be a caterer, a person should be one who supplies food, edible preparations, beverages (alcoholic or non-alcoholic) or crockery and similar articles or accoutrements for any purpose or occasion. The supply may be made directly or indirectly. Consequently, there has to be, firstly, a supply of food, edibles, beverages or crockery and similar articles or accoutrements. Secondly, this supply may be for any purpose or occasion. A purpose is an effectuation of a particular object. An occasion is an event defined with reference to time which may take place either as an isolated occurrence or be sporadic or periodical. Third ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... verages are provided not to NTPC or LANCO but to their employees, customers and guests. That, in our view, begs the question. The taxable catering service cannot, in our view, be confused with who has actually consumed the food, edibles and beverages which are supplied by the assessee. Taxability or the charge of tax does not depend on whether and to what extent the person engaging the service consumes the edibles and beverages supplied, wholly or in part. What is material is whether the service of an outdoor caterer is provided to another person and once it is, as in the present case, the charge of tax is attracted. 9.2 The expression 'outdoor catering' has not been defined under the CGST Act, 2017 / GGST Act, 2017 or the notifications issued there under. Nevertheless, the observations made in the aforesaid judgement of the Hon'ble High Court are relevant for deciding the present issue. In the said judgement, the Hon'ble High Court has observed that the taxable catering service cannot be confused with who has actually consumed the food, edibles and beverages which are supplied by the assessee. It is also held that the taxability or the charge of tax do ..... X X X X Extracts X X X X X X X X Extracts X X X X
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