9911796707
TMI Blog2024 (6) TMI 504X X X X Extracts X X X X X X X X Extracts X X X X ..... ein. In the case of Haldiram Marketing Pvt. Ltd., the brief facts noted are that they were engaged in running food outlets, where packaged food items could be purchased and also availed restaurant dining facilities. Additionally, the appellant there also provided the facility of Take Away of food items. On audit, it was noticed that the appellant was providing services in respect of Take Away orders by way of preparing and packaging food items for the customers. The Tribunal, after considering the provisions of Section 65 B(44) read with 66E of the Finance Act also considering the Circular No.334/3/2011- TRU dated 28.02.2011 and the clarification issued thereafter on 13.08.2015 that the transaction involving Pick-up or Home Delivery of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... liary Services , Sale of Space or Time for Advertisement , Business Support Services , Works Contract Services , Manpower Recruitment or Supply Agency s Services , Transport of Goods by Road Service and Security/Detective Agency Service . 3. During the course of audit, the audit team observed that the appellant was providing Restaurant Service from the Restaurant having air conditioning facilities and had taken exemption on sale of food by way of Take Away or Home Delivery during the Financial year 2013-14 and 2014-15 amounting to INR 12,96,88,205 (INR 5,50,62,291/- during the year 2013-14 and INR 7,46,25,914 during the year 2014-15), and for which taxable value after abatement of 60% works out to be INR 5,18,75,282. 4. Show cause notice da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provided the facility of Take Away of food items. On audit, it was noticed that the appellant was providing services in respect of Take Away orders by way of preparing and packaging food items for the customers. The Tribunal, after considering the provisions of Section 65 B(44) read with 66E of the Finance Act also considering the Circular No.334/3/2011- TRU dated 28.02.2011 and the clarification issued thereafter on 13.08.2015 that the transaction involving Pick-up or Home Delivery of the food items sold by the restaurants are not liable to service tax, being in the nature of sale only and no amount is charged for free delivery of food as the dominant nature of the transaction is that of sale and not service, as the food items are not ser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The sale of food and drink simplicitor, services of selection and purchase of ingredients, preparation of ingredients for cooking and the actual preparation of the food and drink would not attract the levy of tax. Only those services commencing from the point where the food and drinks are collected for service at the table till the raising of the bill, are covered. This would encompass a gamut of services including arrangements for seating, d cor, music and dance, both live and otherwise, the services of Ma tre D Or, hostesses, liveried waiters and the use of fine crockery and cutlery, among others. The provision of the aforesaid niceties are critical to the determination as to whether the establishment in question would attract liability ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Commissioner (Appeals), Coimbatore. In some cases, I am informed that appeals have not been filed by the Department and thus the prevailing view, even within the Department is that there would be no service tax liability on take away food. In view of the aforesaid observations, the Tribunal concluded that no service tax can be levied on the activity of Take Away of food items as it amounts to sale and does not involve any element of service, inter alia, observing as under:- 19. It is seen that in case of take-away of food, the appellant sells the food/packaged items, as chosen by the customer, over the counter and this would amount to sale of goods. Services such as dining facility, washing area, clearing of the tables after the food has ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
