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TMI Blog2013 (7) TMI 97X X X X Extracts X X X X X X X X Extracts X X X X ..... sen & Toubro Ltd., Powai Campus, Mumbai. The appellant was authorized by M/s. Larsen & Toubro Ltd to carry out the catering services at their premises for their employees or/and all its subsidiary or associated companies. The consideration for the services rendered was received by the appellant in two ways. The appellant raises a bill every month for the catering services to M/s. Larsen & Toubro Ltd., under the category of "meal recovery charges" at the rate agreed upon between them and L&T. The appellant also receives amounts from L&T to cover the total cost of the catering services rendered in excess of the receipts under the category of 'meal recovery'. Thus, it was noticed that, during the period 16/06/2005 to 31/03/2009 the appellant h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... articles and not any service and, therefore, the question of levy of service tax under the category of 'outdoor catering service' does not arise. It is also argued that the appellant is a society, whose members are employees of L&T or any of its subsidiary or associated companies, L & T and Allied Concerns Employees' Co-operative Society and Larsen & Toubro Consumers Co-Operative Society Ltd., and service has been rendered to its own members and, therefore, the question of rendering service to others does not arise at all in the present case. 3.1 Reliance is placed on the decision of the Tribunal in the case of Rajeev Kumar Gupta vs. Commissioner of Central Excise, Jaipur 2009 (SRI) GJX 177 CESTAT where in a similar situation, it was held ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has been rendered at the premises of L&T, it does not cease to be an outdoor catering service. He also relies on the decision of the Tribunal in the case of Raj Kumar Jain vs. Commissioner of Central Excise 2009 (13) STR 154 (Tri-Del) where in a similar circumstances where the contractor rendered catering services to the employees of M/s EID Parry at the premises of the said company, the service was held to be classifiable under 'outdoor catering services'. Similarly, in the case of Tamil Nadu Kalyana Mandapam Assn Vs. Union of India 2006 (3) STR 260 (SC) the hon'ble apex Court held that tax on catering services does not amount to tax on sale and purchase of goods. 4.1 In view of the above he pleads for putting the appellant to terms. 5. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing' also includes a person who provides such service at a place of the service recipient. Therefore, the appellant does not cease to be an 'outdoor caterer', merely because the service has been provided at the premises provided by the service recipient. 5.3 As regards the argument that the appellant is paying Maharashtra VAT on the sale of food, and therefore, transaction is one of sale is also not correct. The appellant pays sales tax only on the 'meal recoveries'. On the subsidy provided by M/s. L&T to the appellant to cover the cost of excess expenditure incurred by the appellant, no sales tax is paid by the appellant. The consideration received includes not only the meal recoveries but also the subsidies provided. For instance, for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the above case. 5.5 The reliance placed by the appellant tin the Rajeev Kumar Gupta's case also does not support the case of the appellant. In that case, the services were rendered to the employees of Eicher Tractors and the goods(food items) were sold to their employees at the rates specified by the company. The company provided the space for the canteen apart from providing additional facilities such as furniture, crockery, cutlery, etc. In the present case, the entire payment is borne by M/s L&T and not by their employees. Thus the facts of the present case are clearly distinguishable from that in the Rajeev Kumar Gupta's case and hence the ratio of the said decision would not apply. On the contrary, the decision of this Tribunal in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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