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TMI Blog2025 (1) TMI 187X X X X Extracts X X X X X X X X Extracts X X X X ..... n Form GST ARA 03 before the Appellate Authority for Advance Ruling, Odisha (hereinafter referred to as "AAAR") against the Advance Ruling Order No. 06/ODISHA-AAR/2020-21 dated 09.03.2021 passed by the Authority for Advance Ruling, Odisha. 2.0. In the instant case, the Petitioner M/s Pioneer Bakers, At-Sahayog Nagar, P.O.-Budharaja, Dist-Sambalpur, Odisha having GSTIN No. 21AAQFP6408F1ZB is a partnership firm filed an application for Advance Ruling on 04.05.2020. M/s Pioneer Bakers submitted that they are operating under the Brand name of "Go-Cool" since the year 1997. They have established as a brand "Go-Cool" in the field of bakery items and especially in cakes. They have several outlets operating in the State of Odisha and offer a wide range of goods and services in the business of bakery items. Their principal business is producing and selling of bakery products viz cakes, artisan cakes, pastries, pizza, patties, sandwich, self manufactured ice-creams, handmade chocolates, cookies, beverages etc. They offer a number of customization options to mere customers with respect to the above mentioned products. 2.1. M/s Pioneer Bakers has submitted that the bakery products are manufa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under the restaurant services? Ans: Yes, answer is in the affirmative Q(d) What is the nature and rate of tax applicable to the following items supplied from the premises of the Bakery Shop of the Petitioner ? (i) Items such as Birthday caps, Knife, decorative items which are bundled along with the cakes and are utilized by the Customers in the premises of the outlets. Ans. Rates applicable as per Notification No. 01/2017-Central Tax (Rate) dated 28.06.2017 as amended from time to time. (ii) Items such as Birthday Caps, Knife, decorative items which are bundled along with the cakes and are taken away by the Customers from the outlets. Ans. Rates applicable as per Notification No. 01/2017-Central Tax (Rate) dated 28.06.2017 as amended from time to time. (iii) Items such as chocolate, cookies which are prepared in the nearby workshop of the Petitioner and then processed/customized in the outlets of the Petitioner before selling to the customers. & (iv) Items such as chocolate, cookies which are prepared in the nearby workshop of the Petitioner and the processed/customized in the outlet as per the choice and consumed in the premised itself. Ans. The supply of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sion made by M/s Pioneer Bakers, Jurisdictional Officers and concerned officer in their presentation during PH on dated 14.07.2021 and based upon the existing rules and regulations passed the ruling in keeping the view that the establishments/outlets/premises of the Petitioner cannot be treated as restaurant. Consequently, the activities carried out by the Petitioner from their premises/outlets cannot be considered as restaurant Service. Hence, the Appellate Authority for Advance Ruling, Odisha (AAAR) passed the Order No. 02/Odisha-AAAR/Appeal/2021-22 dated 27.07.2021 as follows: (a) The appeal made by the Jurisdictional Officer is allowed; (b) The ruling made by the Authority for Advance Ruling, Odisha vide their Order No. 06/Odisha-AAR/2020-21 dt. 09.03.2021 against the Question Nos. (a), (c), (d)(iii) & (d)(iv) are set aside; and (c) The items sold by the Petitioner M/s. Pioneer Bakers will attract the GST tariff rate as individual items. 3.3 On Aggrieved by the said order passed by the Appellate Authority for Advance Ruling, Odisha, the Petitioner (M/s Pioneer Bakers) filed a Writ Petition (C) No. 2220 of 2022 before the Hon'ble High Court of Orissa. Consequently, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scope of "restaurants" has been explained by various other authorities and rulings, but the Judgement passed by this Hon'ble Authority based on the definition of restaurant from the "Cambridge Dictionary". The reliance on definition from Cambridge University is erroneous as the definition of restaurant is different in different dictionaries. The inconsistency in the definitions from Dictionary is evident from the fact that the Oxford Dictionary provides the definition of restaurant "as a place where you can buy and eat a meal. (b) The Petitioner has cited various Judgements of different Authorities, but the Order dt. 27.07.2021 has failed to take the same into consideration. The Judgements are- (i) That the Petitioner relied on the definition of restaurant from the Judgement of "In re M/s Square One Homemade Treats (GST AAR Kerala), Advance Ruling No. KER/66/2019". In the said case, it was held that "A restaurant is a place of business where food is prepared in the premises and served based on the orders received from the customer." (ii) That, in a similar case, filed by M/s Hatsun Agro Product Ltd, Advance Ruling No. KAR ADRG 68/2019, The Authority on Advance Rulings ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so considered as restaurant service and, accordingly, service by an entity, by way of cooking and supply of food, even if it is exclusively by way of takeaway or door delivery or through or from any restaurant would be covered by restaurant service. This would thus coyer services provided by cloud kitchens/central kitchens. It is pertinent to mention here that the services provided by the Petitioner are squarely covered under this definition and accordingly fall within the ambit of Restaurant services. d. That, in the case of WPIL Ltd., Ghaziabad vs. Commissioner of Central Excise, Meerut, U.P., reported in (2005) 3 SCC 73 the Hon'ble Supreme Court had held that the clarificatory notification would take into effect retrospectively as the said notification merely clarifies the position and makes explicit what was implicit. e. That, this Hon'ble Appellate Authority being the appellate authority failed to provide any reasons as to how the ruling dated 09.03.2021 passed by the Advance Ruling Authority is incorrect. It is humbly submitted that the order dt. 09.03.2021 was quashed without any reasons. f. The Petitioner is providing all the services and facilities being p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase, the ruling was given by the then Odisha State Appellate Authority of Advance Ruling vide their order No. 02/Odisha-AAAR/2021-22 dated 27.07.2021, the written submissions made by the Petitioner and the Jurisdictional Officer. We have taken note of the submission made by the authorized representatives of the Petitioner during the personal hearing through virtual mode on 07.11.2024. We have also taken into account of the submission made by the Jurisdictional Officer during the personal hearing. 5.1. We are given to understand that the Petitioner has established itself as a band in the field of bakery items and especially in cakes. The business of the Petitioner is producing and selling of bakery products viz cakes, artisan cakes, pastries, pizza, patties, sandwich, self-manufactured ice-creams, handmade chocolates, cookies, beverages etc in its various outlets operating in the state of Odisha. It was submitted that the raw materials are manufactured in the nearby workshops which are brought to the outlets for further processing. Nothing is sold directly from the workshop and each and every item is brought to the outlets for sale. Further, it has been submitted that outlets of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... use (119) of section 2; and (b) 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 human consumption or any drink (other than alcoholic liquor for human consumption), where such supply or service is for caslı, deferred payment or other valuable consideration." By virtue of the above provision, the composite supply of goods being food or any other article for human consumption or any drink, where supply or service is for a consideration, then such composite supply shall be treated as supply of services. Since the Petitioner is supplying ice creams, cakes and other eatables, which are items for human consumption, by way of or as part of any service or in any other manner, the composite supply has to be treated as a supply of services, more specifically the 'Restaurant Service'. 5.4 As per Notification No 11/2017-Central Tax (Rate) dated 28-06-2017, as amended by notification No. 46/2017-Central Tax(Rate) dated 14-11-2017, 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 human consumption or drink, where such supply or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yable on the same, the Petitioner is eligible to take applicable input tax credit which is admissible as per the GST laws. 5.8 Given the observations stated above, the following issue wise rulings are passed: RULING 6.0 Based on the above discussions and findings, the following ruling is passed by the AAAR Odisha State as per the questions raised by M/s Pioneer Bakers:- Q.(a) Whether supply of Cakes, bakery items, ice creams, chocolates, drinks and other eatable products prepared at the premises of the Petitioner and supplied to the customers from the counter with the facility to consume the same in the air-conditioned premises itself covered under the restaurant services? Ans: Yes, answer is in the affirmative. Q.(b) Whether supply of items such as birthday stickers, candles, birthday caps, snow sprays etc. related items which are essentially used in birthday celebration can be classified as Composite Supply defined under Section(30) of the CGST Act, 2017 and Section 2 (30) of the OGSI Act, 2017 wherein the principal supply of goods consists of bakery items, chocolates while the supply. of services include the supply of air conditioned place to sit and to celebrate birt ..... X X X X Extracts X X X X X X X X Extracts X X X X
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