9911796707
TMI Blog2019 (3) TMI 1009X X X X Extracts X X X X X X X X Extracts X X X X ..... r factories. The appellant submitted that it normally charges GST @ 18% classifying their services under heading 9963 as 'outdoor catering'. The appellant submitted that one of the customers, who was recipient of services, had given the contract for catering services to be provided to the staff and premise for services to be provided for canteen, which was non air-conditioned, had also been made available to the appellant. The said customer had asked the appellant to charge GST @ 12%, therefore, the appellant requested for advance ruling as to whether rate of tax on their supplies made to the recipient would be 12% or 18%. The appellant submitted copy of agreement entered into between them and the client. The appellant, vide letter dated 18 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... resaid ruling, the appellant has filed the present appeal. 4.1 The appellant has submitted that the CBIC, vide Circular dated 08.01.2018 has clarified that even if the mess or canteen services are outsourced to a third person, the same would still be covered by Serial No. 7(i) of Notification No. 11/2017-C.T. (Rate), as amended, with stipulation that no input tax credit is availed. As the appellant is operating a canteen in the factory premises of the company, the clarification applies in all fours and consequently, the rate of tax applicable to such supply being made by the Appellant is 5%, as applicable to a mess / canteen. It is further submitted that the clarification issued by CBIC is in the context of a mess or a canteen, which was b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellant has been operating. It is submitted that as the statute itself envisages that food that can be served in a factory is only by a canteen, the supply made by the appellant as a canteen operator cannot be regarded as an outdoor catering. The appellant further submitted that the term 'outdoor catering', 'mess' and 'canteen' have not been defined in the statute and referred to the dictionary meanings of these terms. It is submitted that catering does not involve the supply of food / beverages on a daily basis whereas in case of canteen, the supply is virtually on a daily basis to the same set of people. 4.3 The appellant submitted that the AAR referred and relied upon the definition of 'catering' and 'outdoor catering', as provid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r Sl. No. 7(v) of Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017, as amended, issued under the Central Goods and Services Tax Act, 2017 (herein after referred to as the 'CGST Act, 2017') and Notification No. 11/2017State Tax (Rate) dated 30.06.2017, as amended issued under the Gujarat Goods and Services Tax Act, 2017 (herein after referred to as the 'GGST Act, 2017'), the relevant part of which is reproduced below :- Sl.No. Chapter, Section or Heading Description of Service Rate (per cent.) Condition (1) (2) (3) (4) (5) 7 Heading 9963 (Accommodation, food and beverage services) (i) Supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 - 8.1 The terms 'outdoor catering', 'restaurant', 'mess' and 'canteen' have not been defined in the CGST Act, 2017 and the GGST Act, 2017 or the Notifications issued there under. However, in the catering industry, the term 'outdoor catering' refers to service wherein the kind, quantum and manner in which food / eatable/ drinks is to be served is decided by the service recipient and the service provider provides service of ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. 8.4 Once the service being provided by the appellant is covered under 'outdoor catering' service in terms of the Notifications issued under the CGST Act, 2017 and the GGST Act, 2017, the category under which the license has been issued to the appellant under the Food Safety and Standards Act would not make any difference on the taxability of the service provided by the appellant. For the same reasons, the provisions of Factories Act, 1948 are also not relevant to determine the nature of service provided by the appellant. 9.1 The appellant has also referred to Government of India, Mini ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
