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2009 (8) TMI 479 - AT - Service TaxOutdoor caterers- The appellants are engaged in the business of preparation and supply of meals and snacks to various Airlines. They are also engaged in packing and handling of food, loading and transportation of food trolleys; storage, handling and setup of catering equipments; storage and handling of dry stores and other recycling items; cleaning of equipment, handling of waste, cabin service, and laundry services. The provision of food items is undertaken after entering into contracts with respective Airlines. The appellants are registered with the department as provider of services under the category of ‘Outdoor Catering Services’ and discharge service tax liability on the entire amounts collected towards handling charges, delivery charges, hi-lift charges, and bond handling charges. The appellants did not pay service tax on account of provision of meals/food items to the Airlines. In the light of the decision of LSG Sky Chefs (India) (P.) Ltd. v. CST 2009 -TMI - 33134 - CESTAT BANGLORE, held that- once the appellants paid sales tax on a portion of the value of the contract, then, simultaneously service tax could not be demanded as they were mutually exclusive. Thus, we vacate the impugned demands of service tax and penalties and allow these appeals.
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