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2019 (3) TMI 1009 - AAAR - GSTRate of GST - outdoor catering - business of caterers and supply food, beverages and other eatables (nonalcoholic drinks) - complete services at various places of their customers, who have in house canteens at their factories - Circular issued from F.No. 354/03/2018 (Circular No. 28/02/2018-GST dated 08.01.2018) - Sr. 7(v) of Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017, as amended, issued under the Central Goods and Services Tax Act, 2017 and Notification No. 11/2017-State Tax (Rate) dated 30.06.2017, as amended - challenge to AAR decision. Held that:- The terms ‘outdoor catering’, ‘restaurant’, ‘mess’ and ‘canteen’ have not been defined in the CGST Act, 2017 and the GGST Act, 2017 or the Notifications issued there under. However, in the catering industry, the term ‘outdoor catering’ refers to service wherein the kind, quantum and manner in which food / eatable/ drinks is to be served is decided by the service recipient and the service provider provides service of catering at the place other than his own. This meaning of ‘outdoor catering’ has legal precedence as the term ‘outdoor catering’ was specifically defined in Chapter V of the Finance Act, 1994. In the present case, the service recipient has engaged the appellant for running of the canteen and rates for the meal, snacks, tea have been fixed and payable by the service recipient. The menu is required to be decided by the canteen committee of the service recipient. Further, the appellant is providing these catering services from other than his own premises. Therefore, the nature of service provided by the appellant is that of ‘outdoor catering’ service in view of the meaning of the said term as commonly understood, even though there is no statutory definition of the said term provided in the CGST Act, 2017 and the GGST Act, 2017. The issue whether the nature of service provided by the appellant would change since the meal, snacks, tea etc. are consumed by the workers / employees of the recipient, the AAR has referred to the judgement of Hon’ble High Court of Allahabad in the case of Indian Coffee Workers’ Co-Op. Society Ltd. Vs. CCE & ST, Allahabad [2014 (4) TMI 407 - ALLAHABAD HIGH COURT]. In the said judgement, it has been held that the taxable catering service cannot be confused with who has actually consumed the food, edibles and beverages which are supplied by the assessee. It is also held that the taxability or the charge of tax does not depend on whether and to what extent the person engaging the service consumes the edibles and beverages supplied, wholly or in part. The situation where the food / eatables/ drink are the choice of the recipient and the kind, quantum and manner in which the food is to be served is also decided by the recipient, as is the issue in the present case, has not been covered by the said Circular and hence the same is not applicable in the facts of the present case - thus, the supply of services by the appellant is covered under Sr. 7(v) of Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017, as amended, issued under the Central Goods and Services Tax Act, 2017 and Notification No. 11/2017-State Tax (Rate) dated 30.06.2017, as amended, issued under the Gujarat Goods and Services Tax Act, 2017, attracting Goods and Service Tax @ 18% (CGST 9% + SGST 9%) and reject the appeal filed by M/s. Rashmi Hospitality Services Private Limited. AAR decision upheld.
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