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TMI Blog2009 (1) TMI 120X X X X Extracts X X X X X X X X Extracts X X X X ..... utdoor Catering Services' as defined under section 65(76a) of the Finance Act. investigations were conducted by the Anti Evasion Wing of the Service Tax Commissionerate, Bangalore, and it was revealed that the appellants were not discharging the Service Tax liability on the gross amount collected from the Airlines. Therefore, proceedings were initiated against the appellants for demand of the differential Service Tax short paid along with Education Cess. The learned Adjudicating Authority, after considering all the submissions, made by the appellants confirmed a demand of Rs. 58,04,581 as Service Tax for the period from 10-9-2004 to 31-3-2006 under the provisions of section 73(1) of the Finance Act. Interest under section 75 has been demand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... However, in view of the various decisions before the Tribunal, they were only pressing for the deduction of the amounts received for the supply of food and beverages from leviability to Service Tax. They also stated that they would be entitled for exemption under Notification 12/2003. They relied on several case-laws to hold that they would not be leviable for service tax in respect of the amounts for which they had already paid the VAT or sales tax to the State Government. The learned Adjudicating Authority, in his order, has rejected all the contentions of the appellant, According to the learned adjudicating Authority, "the value of taxable service, in relation to service provided by an Outdoor Caterer to a client, is the gross amount cha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellants are required to discharge the service tax liability on the entire amount collected from the Airlines which includes separately the amount collected for food, beverages, etc., even in terms of contract. It is also seen that separate invoices have also been issued for such supplies. No doubt, apart from mere supply of foods, the appellants is also engaged in various services like wrapping and handling of food; loading and transportation of food in trolleys; storage, handling and set up of catering equipments; storage and handling of dry stores and other recycling items; cleaning of equipment; handling of waste; cabin service and laundry services. What the appellants have excluded is only the amount due to the supply of the food ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tions Ltd. s case (supra); (ii) BPL Mobile Communications Ltd. v. CCE [2007] 8 STT 416 (Mum.-CESTAT); (iv) ASL Motors (P.) Ltd. v. CCE & ST [2008] 17 STT 83 (Kol.-CESTAT); (v) Thermax Ltd. v. CCE [2008] 12 STT 89 (Mum.-CESTAT); (vi) Gerb Vibration Control Systems (P.) Ltd v. CST 17 STT 176 (Bang.-CESTAT); (vii) Glaxo Smithkline Asia (P.) Ltd v. Assessing Authority [WP(C) No. 10726 of 2006, dated 24-5-2007]. Further, we have to take note of an important decision of the Hon'ble Apex Court in the case of Imagic Creative (P.) Ltd. (supra). In the said decision, the facts are that the appellant, M/s. Irnagic Creative Pvt. Ltd., undertook the services for the evolution of prototype conceptual design (i.e., creation of concept) on which they ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the applicability of Notification No. 12/2003 to the appellant. The cost of the food items supplied is clearly available in the records. Therefore, the Commissioner's finding that they are not entitled for the benefit of Notification 12/2003 is not in order. The said Notification provides for deduction of the value of the goods and materials sold. Reliance was also placed on the decision of this Bench in the case of Adlabs v. CCE [2006] 4 STT 133 (Bang.-CESTAT) and also Shilpa Colour Lab. v. CCE [2007] 8 STT 102 (Bang.-CESTAT). In any case, it is seen that the appellants had already discharged the service tax liability on the amount collected by excluding the cost of the food items supplied and also certain other payments, which have been ..... X X X X Extracts X X X X X X X X Extracts X X X X
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