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TMI Blog2018 (11) TMI 335X X X X Extracts X X X X X X X X Extracts X X X X ..... er the definition of the “Restaurant services” - the appellant claim that it is running Restaurant Services in the SEZ area is not tenable and hence the GST rate of 5% as envisaged by the appellant is not correct. Ruling:- The services of supplying food by the appellant to the employees of the unit located in the Special Economic Zone is not covered under the zero rated supplies in terms of Section 16(1)(b) of the IGST Act, 2017 and the services of the appellant are also not in the nature of restaurant services as claimed by the appellant. - MAH/AAAR/SS-RJ/12/2018-19 - - - Dated:- 1-11-2018 - SMT. SUNGITA SHARMA, AND SHRI RAJIV JALOTA, MEMBER PROCEEDINGS (under Section 101 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017) At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the MGST Act. The present appeal has been filed under Section 100 of the Central ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Case (II) The facts mentioned in the case I remains the same except that in addition to the supply of food on the request of the client, Merit Hospitality Pvt. Ltd. also undertakes the services of distribution of food for which Merit Hospitality raises separate bill charging 18% GST. Question : Can both the activities, put together i.e. supply and distribution of food to the employees of A Ltd., be called as canteen service and applicable rate of 5% be charged on our bills? Case (III) The employees of A Ltd. have formed Employees Co-op. Society , which is registered under the Societies Registration Act. The Employees Co-op. Society is running a canteen for the employees of A Ltd. The contract of supply of food of Merit Hospitality is now with the Employees Co-op society and not with A Ltd. Question : Under such circumstances, can it still be claimed that Merit Hospitality is running a canteen and the applicable rate of 5% be charged on our bills? Case (IV) : The Merit Hospitality has entered into a contract with a company called say B Ltd. and B Ltd. is having its unit in SEZ area (Special Export Zone). The supply of food is done by Merit Hospi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facts required for decision in respect of the specific case were not put before the authority when factually all documents as listed and demanded by the Authority were promptly submitted by the Appellant during the course of proceeding as evidenced by various submissions made by the Appellant. 3. The Ld. Advance Ruling Authority failed to state in the order that the facts which he had required to decide the issue and according to him were demanded by him during the hearing proceedings by the applicant did not provide or was unable to furnish such information or documents related to those facts. 4. The Ld. Advance Ruling Authority erred in quoting, relying and concluding his opinion based to his observations in respect of the applicant s other transactions pertaining to the domestic market and applying such observations in the case of transactions with the unit based in SEZ under consideration. Thus, he failed to distinguish applicability of GST Act and rules in case of domestic situations and that in goods and services supplied in a unit based in SEZ area. Additional submission dated 01/10/2018 5. The appellant vide the above additional submission submitted t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plies of goods or services or both, namely:- (a) export of goods or services or both; or (b) supply of goods or services or both to a Special Economic Zone developer or a Special Economic Zone unit. 9. Thus from the above provision, it is crystal clear that the supply made by the appellant to the employees of the unit located in SEZ cannot be construed as zero rated supply by any stretch of imagination, as the employees can neither be treated as SEZ developer nor as SEZ unit. Accordingly, GST will be applicable as per the classification of the services determined in terms of the scheme of the classification of services as provided under Annexure A to the Notification 11/2017-C.T. (Rate) dated 28.06.2017 as amended by the Notification No. 46/2017-C.T. (Rate) dated 14.11.2017. 10. As regards the question c pertaining to the case IV of the appeal/application, wherein the appellant has claimed that since it is running a restaurant in the SEZ area, the applicable rate of GST will be 5%, it is observed that question raised in the application is not relevant and lacks rational in as much as the appellant is presuming and is putting pre-emptive notion before the A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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