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2018 (7) TMI 1061 - AT - Service TaxServing of food/beverages in the Canteen of the Factory - benefit of N/N. 25/2012-ST as amended by N/N. 14/2013-ST dated 22/10/2013 - Interpretation of Statute - scope to those canteens “maintained by and run by the factory themselves” - intent in the Entry No.19A of the mega exemption Notification. Held that:- The Adjudicating Authority has sought to whittle down the scope to those canteens “maintained by and run by the factory themselves”. The words in the Notification do not support this view inasmuch as the Notification uses the phrase “canteen maintained in a factory” and not “maintained by and/or run by a factory”. If the intent of the Notification were to be as interpreted in the impugned Order-in-Original, then the wording in the Notification should have been “maintained by and/or run by the factory” - a narrow interpretation of SI. No.19A of the Notification, based on the fact that an outdoor caterer is maintaining the canteen, is neither warranted nor contemplated in the Notification. Maintaining canteen for employees is a statutory requirement under the Factories Act for certain category of factory and outsourcing the same is not barred under the Act ibid and Rules made thereunder. In the circumstances, if the Notification is interpreted to mean that exemption will be available only when the canteen is run by factory, such interpretation will be doing violence to the language of the Statute and in fact will amount to adding words in the Notification which is not permitted under established law. Exemption under N/N. 14/2013-ST - Section 66F(1) of the Act - It is also alleged that the main service i.e. canteen service is exempted under the Notification No.14/2013-ST and not the outdoor catering services which is used to provide such service - Held that:- It emanates from the facts that the appellant is entering into agreement with factories for providing catering services in their canteens, for the employees as per rates agreed upon for not only supplies but also serving of food and beverages - Even if such services are considered as OUTDOOR CATERING, those have been used for providing services in relation to serving food and beverages in a canteen. The services provided by the appellant is covered by Entry No.19A of the Negative List and exempted from payment of Service Tax - appeal allowed - decided in favor of appellant.
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