2008 (8) TMI 62 - AT - Service Tax

Appellant caterer served food/beverages to the employees of M/s EID Parry Ltd. - They were given space by M/s EID in their own factory/place for the purpose of preparing and supplying the food to employees of the said company - held that the service rendered by the appellant squarely falls under the category of outdoor catering service plea for cum-duty benefit is accepted tax is payable for the period from 10.9.2004 along with interest not for the period prior to10.9.2004.

Summary

Issues:
Interpretation of whether the services provided constitute "Outdoor Catering Services" under the Finance Act, 1994.
Applicability of service tax on the appellant for the period from 10.9.2004 onwards.
Consideration of cum-duty benefit in tax liability.
Imposition of penalties under Sections 76, 77, and 78 of the Finance Act, 1994.

Analysis:
The case involved an appeal against the order of the Commissioner (Appeals) regarding the appellant, a caterer, providing food and beverages to employees of a company without having their own business premises. The Original Authority confirmed a demand for service tax on the appellant as an "Outdoor Catering" service provider. The Commissioner (Appeals) upheld this decision. The appellant argued that the premises provided by the company should be considered their own for the purpose of defining 'Outdoor Catering Services'. The appellant also raised concerns about the tax realization period, cum-duty benefit, and requested relief under Section 80 of the Finance Act, 1994.

The Tribunal considered the submissions and held that the services provided by the appellant fell under the category of outdoor catering service as per the defined criteria. However, the Tribunal accepted the appellant's request for the cum-duty benefit in tax liability. The Tribunal also noted that the tax demand for services rendered before 10.9.2004 was not permissible and directed the original authority to verify the factual position. Regarding penalties, the Tribunal found it to be a case of interpretation of law and granted relief under Section 80 of the Finance Act, 1994 due to the circumstances faced by the appellant.

In conclusion, the Tribunal ruled that the appellant must pay service tax for the period from 10.9.2004 onwards as outdoor catering service, with interest. The original authority was instructed to re-determine the duty liability considering the Tribunal's directions. The penalties imposed were set aside, and the appeal was disposed of accordingly.