Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2019 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (1) TMI 1309 - AT - Service TaxValuation - Outdoor Catering Services - inclusion of cost of items and service charges in assessable value - the bill amount showed the total cost of sale without showing the cost of items and service charges separately - appellants had paid service tax on 50% of the cost by availing the benefit of N/N. 01/2006-ST. Whether the differential service tax of ₹ 47,81,657/- with interest demanded on entire value of food and service charges is correct or whether the service tax liability is required to be calculated only on the service charges? - Held that:- The issue is no longer res integra and is covered by the decision of the Hon’ble Karnataka High Court alluded to by the Ld. Advocate in C.S.T., Bangalore Vs. The Grand Ashok [2011 (4) TMI 210 - KARNATAKA HIGH COURT]. The Hon’ble High Court of Karnataka has held that Outdoor Catering is a composite but divisible contract of service under Article 366(29)(a)(f) of the Constitution of India; hence, sale of goods has to be bifurcated from service provided - the demand amounting to ₹ 47,81,657/- with interest thereon and also the imposition of penalties on that score cannot sustain and will require to be set aside - demand set aside. Whether the amount of commission, consultancy fees and housekeeping and pantry management charges received by the appellant are required to be included in the value of taxable service under “Outdoor Catering” category or otherwise? - Held that:- There are no corroborative evidence in the Show Cause Notice or the impugned Order to shore up the Department’s allegation that these charges actually relate to Outdoor Catering Service only - The clarifications of appellant in this regard have also not been addressed or rebutted by the adjudicating authority - this demand with interest and penalty also does not have any basis to sustain - demand set aside. Appeal allowed in toto.
|