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TMI Blog2021 (3) TMI 1093X X X X Extracts X X X X X X X X Extracts X X X X ..... l Authority for Advance Ruling Regulations, 2018. 1. Admissibility of the Application 1.1 At the outset, we would like to make it clear that the provisions of the Central Goods and Services Tax Act, 2017 (the CGST Act, for short) and the West Bengal Goods and Services Tax Act, 2017 (the WBGST Act, for short) have the same provisions in like matter except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the WBGST Act. Further to the earlier, henceforth for the purposes of these proceedings, the expression 'GST Act' would mean the CGST Act and the WBGST Act both. 1.2 The applicant is stated to have a place of business with two sections out of which one section has a sweet parlour and the applicant is claimed to be engaged in selling sweetmeats, namkeens and bakery items off the counter in the form of takeaways from the said sweet parlour. In other section of the premises, the applicant is claimed to be engaged in preparing and serving fast food snacks and beverage items which can either be consumed at the premises or allowed as tak ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section, restaurant service is offered by the applicant where applicant prepares and serves fast foods snacks, beverage items which can either be consumed at the premises or the customers can take it away. The applicant argues that the aforesaid two sections are separated not only in respect of billing counters but the applicant maintains separate registers and books of accounts for two types of business.. 2.2 The applicant has entered into an agreement with Sri Sri Academy, a secondary educational institution, to serve food items on pre decided monthly cost basis. The copy of agreement between Sri Sri Academy and the applicant is submitted. 2.3 The applicant expresses that the supply of sweetmeats, namkeens and bakery items from the sweet parlour should be considered as supply of goods as no iota of service is attached in takeaway counter. Independent nature of these two sections proves that they are not naturally bundled. If the restaurant service is closed, takeaway counter can be operated independently. Hence, sale of food items from the takeaway counter should be treated as supply of goods with applicable rate of tax with the benefit of input tax credit. 2.4 The applicant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... RS-4728 dated 10/02/2021 5. Bank account statement of ICICI Bank for the period 01/01/2021 to 31/01/2021 The applicant claims that all business transaction activities of sweet parlour is deposited in ICICI bearing IFS code ICIC0003870 6. Bank account statement of Axis Bank for the period 01/01/2021 to 06/02/2021 The applicant claims that all business transaction activities of restaurant are deposited in Axis Bank. 7. Sale register of Sweet Parlour Books of accounts of two premises are maintained separately. Sale and purchase registers of sweet parlour and restaurant are provided to prove its arguments. 8. Sale register of restaurant 9. Purchase register of Sweet Parlour 10 Purchase register of restaurant 2.8 Further, in support of his submission that books of accounts are maintained separately for the two units, the applicant, vide e-mail dated 10.03.2021 has sent Provisional Profit & Loss A/c and Provisional Balance Sheet of BALAJEE BHOG-RESTAURANT and BALAJEE BHOG-SWEETS PARLOUR respectively for the period from 01.04.2020 to 28.02.2021. 3. Submission of the Revenue 3.1 The concerned officer from the Revenue has furnished a written submission dated 03.02.2021 thr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... em of any quantity from the sweetmeats counter without visiting the restaurant and such supplies have no direct or indirect nexus with restaurant services and are completely independent of restaurant activity. 4.4 It appears from the aforesaid mode of business as carried out by the applicant that when goods are supplied from the sweetmeats parlour without any element of supply of services or as a part of any services, it cannot be considered as a 'composite supply'. Such supplies shall be treated as supply of goods and shall attract tax accordingly. 4.5 Supply of food and beverage items made in the restaurant or as takeaways from the restaurant counter having an element of supply of services shall qualify as 'composite supply'. The principal supply being the supply of restaurant service, tax on such supply shall be levied according to entry serial number 7 of the Notification No. 11/2017- Central Tax (Rate) dated the 28th June, 2017, as amended from time to time (corresponding West Bengal State Notification No. 1135 F.T. dated 28.06.2017). 4.6 Further, the applicant has entered into an agreement for providing catering services with Sri Sri Academy, an educational institution aff ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ." 4.10 Supply of catering services to an educational institution providing education services up to higher secondary school or equivalent, therefore, shall get covered under the entry serial number 66 (b)(ii) of the Exemption Notification No. 12/2017- Central Tax (Rate) dated 28.06.2017 and shall be exempted from payment of tax. 4.11 However, the agreement made between the applicant and Sri Sri Academy also requires the applicant to provide food and beverages to the auditor, guests, guests /parents on programme days. Evidently such supplies of services are event based and occasional in nature and falls under the category of 'outdoor catering'. The supply, therefore, shall attract tax @ 5% vide entry serial number 7(iv) of the Notification No. 11/2017- Central Tax (Rate) dated the 28th June, 2017, as amended from time to time (corresponding West Bengal State Notification No. 1135 F.T. dated 28.06.2017, as amended from time to time) without credit of input tax charged on goods and services used in supplying the services. In view of the above discussion, we rule as under: RULING (i) Supply of food and beverages from the sweetmeats counter by the applicant, where the customers h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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