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TMI Blog2018 (11) TMI 335X X X X Extracts X X X X X X X X Extracts X X X X ..... rence to the CGST Act would also mean a reference to the same provisions under the MGST Act. The present appeal has been filed under Section 100 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as "the CGST Act and MGST Act"] by Merit Hospitality Services Pvt. Ltd. (herein after referred to as the "Appellant") against the Advance Ruling No. ARA-22/2017-18/B-29 dated 05.05.2018 = 2018 (7) TMI 1492 - AUTHORITY FOR ADVANCE RULING - MAHARASHTRA. BRIEF FACTS OF THE CASE A. Merit Hospitality Services Pvt. Ltd. (hereinafter referred to as "Appellant" or the "Company") is engaged in the business of providing catering services to the various corporate offices on regular ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... received from the company to Merit Hospitality directly as per terms of payment mentioned in the contract. Question: Whether on the facts and circumstances of the case, can the above activity be called as canteen activity, and the applicable rate of 5% be charged on our bills. Case (II) The facts mentioned in the case I remains the same except that in addition to the supply of food on the request of the client, Merit Hospitality Pvt. Ltd. also undertakes the services of distribution of food for which Merit Hospitality raises separate bill charging 18% GST. Question: Can both the activities, put together i.e. supply and distribution of food to the employees of 'A' Ltd., be called as canteen service and applicable rate of 5% be charged on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase I: The above question pertaining to the Case I mentioned above is answered in negative. Case II: The above question pertaining to the Case Il mentioned above is answered in negative. Case III: The above question pertaining to the Case Ill mentioned above is answered in negative. Case IV: Question (a) pertaining to case IV could not be answered by the authority due to lack of clarity in the issue in the absence of adequate information or details. Question (b) pertaining to case IV is answered in negative. Question (c) pertaining to case IV is answered in negative. D. Being aggrieved by this ruling of AAR, the appellant has filed an appeal against the said ruling under section 100 (1) of the CGST Act 2017. Grounds of Appeal 1. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her transactions pertaining to the domestic market and applying such observations in the case of transactions with the unit based in SEZ under consideration. Thus, he failed to distinguish applicability of GST Act and rules in case of domestic situations and that in goods and services supplied in a unit based in SEZ area. Additional submission dated 01/10/2018 5. The appellant vide the above additional submission submitted that U/s 16(1)(b) of the IGST Act, 2017, supply of goods or services or both to a SEZ unit or a developer of SEZ are treated as 'zero' rated supplies. Further, Section 16(3) of the IGST Act allows a registered person to made a "zero rated supplies" without payment of Integrated tax subject to conditions, safeguards and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nly. Hence, the moot issue before us is to decide whether the activities undertaken or proposed to be undertaken of the appellant by way of supply of food or drinks or any articles for human consumption to the employees of the company, located in the Special Economic Zone is covered under the zero rated supply or otherwise. 8. First, we will discuss the "zero rated supply", as provided under Section 16(1) of the IGST Act, 2017, which is reproduced herein below: Section 16(1) "Zero rated supply" means any of the following supplies of goods or services or both, namely:- (a) export of goods or services or both; or (b) supply of goods or services or both to a Special Economic Zone developer or a Special Economic Zone unit. 9. Thus from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the appellant on 01.10.2018, wherein they have categorically submitted that they are registered as "Outdoor Caterers" and are basically engaged in providing the corporate catering services to their offices /units as per the terms and conditions of the contracts entered with them. They further submitted that they prepare the food in their own kitchen and then distribute it to various companies at different locations. 11. From the foregoing, it is apparent that the food is being cooked at one place and being distributed to the various different locations of the companies with whom they have entered into contract. Thus, this event is not covered under the definition of the "Restaurant services" as discussed above. Thus, the appellant claim ..... X X X X Extracts X X X X X X X X Extracts X X X X
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