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TMI Blog2018 (6) TMI 1365X X X X Extracts X X X X X X X X Extracts X X X X ..... e period and the penalty has also been imposed. 2. Facts in brief for the purpose are that the appellant is engaged in the business of providing food to various airlines alongwith the responsibility of packing and handling of food loading and transportation of food trolleys, storage and handling of dry stores, cleaning of equipment and laundry services. The appellant was handing over all food to the airlines staff and the appellant was paying Service Tax on the consideration of the said services. Vide show cause notice dated 16th December, 2008, the Revenue has asked the appellant to include the cost of food supplied by him to the airlines, in the value of the said services for the purpose of paying the Tax. The said show cause notice had ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... suant to the 46th Amendment the supply of food or drinks either by way of or part of any service was treated as a sale or purchase of goods. 6.2. Supreme Court in the case of K. Damodharaswamy Naidu and Brothers Vs. State of Tamil Nadu (2000) 117 STC 1 held that the price which the customer pays for supply of food in restaurant cannot be split up and Sales tax is levaible on the entire amount that is charged to the customers. The decision analyzed the 46th Amendment, its purport and object. 6.3. A levy of service tax on outdoor catering was introduced in the year 1997 w.e.f 01.08.1997 and since the serving was not popular it was withdrawn w.e.f 01.06.1998. This was brought back by Finance Act, 2004 w.e.f 10.09.2004 in the form of introduc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e goods passes from IRCTC to Indian Railways when the food is loaded in the trains. The moment the food is loaded, the food belongs to Indian Railways. The fact that the food is served while the train is moving through another State is immaterial. It is not possible to accept that property in goods is transferred only when the food is served to the passenger as it would lead to impossible situations." 7. In the case of Narang Hotels and Resorts Vs. State of Maharashtra (2004) 135 STC 289 wherein the Bombay High Court held that sale by a flight kitchen of eatables or goods is complete when the goods are loaded in the supply unit and dispatched when food is supplied and served simultaneously it is outdoor catering else it is sale of goods e ..... X X X X Extracts X X X X X X X X Extracts X X X X
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