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2009 (1) TMI 169 - AT - Service Tax‘Outdoor Catering Services’ - non payment of service tax on the gross amount received from M/s. Kingfisher Airlines for in-flight catering from November 2005 to May 2006. Consequently, proceedings were initiated for short levy – held that - It is very clear that Article 369 (29A) specifically provides a legal fiction in respect of catering contracts where the contracts can be divisible into two components, i.e. service portion and sale of goods portion. As far as the sale of goods portion is concerned, it is very clear that VAT or sale tax has already been discharged by the appellants. Once the sale tax has already been discharged by them, they cannot be asked to pay service tax on the same value. - the benefit of Notification No. 12/2003-ST is available to all the services. There is an exclusion of the value of the goods sold during their rendering of service. In this case, it is very clear in view of the separate invoices raised that the food/beverages supplied have been separately paid for – Demand and penalties set aside.
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