TMI Blog2005 (8) TMI 20X X X X Extracts X X X X X X X X Extracts X X X X ..... 8238 of 2005 is issued by the Central Excise Department holding that petitioner is liable to get registered and pay service tax under sections 65 and 66 of the Finance Act, 1994, as amended by the Finance (No. 2) Act, 2004, with effect from September 10, 2004, which among other things provides for service tax for the services rendered by outdoor caterers. 2. I heard Sri P. Gopalakrishnan Nair, counsel appearing on behalf of the petitioner and Sri John Varghese, Assistant Solicitor General of India, appearing for respondents. 3. Service tax was introduced on outdoor caterers by the Finance (No. 2) Act of 2004 with effect from September 10, 2004. Since the petitioner is engaged in supply of food and beverages to air companies for serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... caterer engaged in providing services in connection with catering at a place other than his own but including a place provided by way of tenancy or otherwise by the person receiving such services 5. The petitioner is admittedly engaged in supply of food and beverages to air crafts for service to the passengers on board. Counsel for the petitioner submitted that supply of food and beverages will attract liability for service tax only when such supplies are made at a place other than normal business premises of the party and such supplies should be for a specific purpose or occasion. According to counsel, transactions that attract Service tax are supplies outside for any purpose or occasion like marriage, birthday, etc. The petitioner' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the premises of the caterer, it is outdoor catering . I do not think, place referred to in section 65(76A) has any artificial or technical meaning. Therefore, service anywhere outside the caterer's place will attract liability under section 66 of the Act. Even though counsel for the petitioner referring to some earlier decisions of the Supreme Court, contended that the levy is harsh and is virtual sales tax for which central legislation is not permissible as the subject is covered by entry 54 of the State List in the VIIth Schedule to the constitution, the argument is not tenable by virtue of the direct decision of the Supreme Court above referred to in the same matter. I do not think there is any scope for the High Court to enter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion is seen granted on Service tax at 50 per cent, of the value of service rendered by outdoor caterers. So much so, the grievance of the petitioner that value of goods, get taxed both for sales tax and for service tax, is not correct. Probably, in the estimate of the Government 50 per cent, of the charges is attributable to supply of goods eligible for exemption and balance charges collected are attributable to essentially service rendered by the outdoor caterer. In the circumstances, and in view of the judgment of the Supreme Court above referred to, I find no scope for interference. It is also reported by the Additional Solicitor General that all other outdoor caterers supplying food to aircrafts are registered and are paying tax withou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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