TMI Blog2018 (8) TMI 1286X X X X Extracts X X X X X X X X Extracts X X X X ..... service so rendered by the assessee, which also includes the cost of transporting the food articles constitutes service. Therefore, to this extent alone, the assessee is liable for service tax and not for the entire cost received from the Airlines. Appeal dismissed - decided against Revenue. - ST/712/2009 - FINAL ORDER No. A/30856/2018 - Dated:- 26-7-2018 - Mr. M.V. Ravindran, Member (Judicial) and Mr. P. Venkata Subba Rao, Member (Technical) Shri Bhanu Kiran, Assistant Commissioner (AR) for the Revenue. Shri Karan Talwar, Advocate for the Assessee. ORDER [Order per: M.V. Ravindran] This appeal is filed by the Revenue against Order-in-Appeal No. 25/2009 dated 19.05.2009. 2. Heard both sides and perused the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent on the value of the supplies made by them. He submits that though the invoices are produced which indicates supply part separately and handling charges separately the respondent had claimed abatement of 60% from such value for discharging sales tax liability which would mean that the balance amount calculated at the rate of 40% would be towards the service element. He relied upon the Hon ble High Court of Kerala in the case of SAJ Flight Services Pvt. Ltd., [2006 (4) STR 432] for the proposition that supply of foods and beverages to aircrafts are liable to be taxed. 5. Learned Counsel submits that the First Appellate Authority was correct in coming to such a conclusion and the reliance placed by the First Appellate Authority on the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the matter can be taken up for final disposal without insisting on pre-deposit. Accordingly, I proceed to dispose of the main appeal. 6 . The appellants are paying service tax on Handling Charges collected by them from the airlines, under the category of Outdoor Catering Services . The dispute in the instant case is about the levy of service tax on that portion of value pertaining to food articles on which sales tax was not levied. The adjudicating authority had placed reliance on the Apex Court s decision in the case of Tamilnadu Kalyana Mandapam Owners Association (TNKM) [2006 (2) STR 438 (SC)] wherein it was held that services rendered by outdoor caterers is in pith and substance, a tax on services and not a tax on sale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... house, catering establishment, hotel, coffee shop, sweet shop or any establishment by whatever name called and any club, who supplies by way of or as part of any services or in any other manner whatsoever of goods being food or any other article for human consumption or drink shall pay tax at the rate of twelve ad half percent (12.5%) on sixty percent (60%) of the taxable turnover, if the taxable turnover in a period of preceding twelve months exceeds ₹ 5,00,000/- (Rupees five lakhs) or in the preceding three moths exceeds ₹ 1,25,000/- (Rupees one lakh twenty five thousand) . Thus it is clear from the above that VAT is to paid only on the 60% of the taxable turnover. It does not indicate that the remaining 40% value relates to s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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