TMI Blog2019 (3) TMI 1009X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t entered into between them and the client. The appellant, vide letter dated 18.01.2018 submitted that it is an industrial canteen contractor providing catering services to manufacturing industries which is statutory canteen maintained under law and their service recipient has asked to charge GST @ 5% on service based on clarification delivered by Tax Research Unit, Department of Revenue vide Circular issued from F.No. 354/03/2018 (Circular No. 28/02/2018-GST dated 08.01.2018). The appellant further submitted that viewing the above clarification, it is admitted fact that statutory body have to provide food and beverage to their staff and the appellant is the outside contractor providing the service to statutory body, hence whether the above clarification is applicable to them, and what should be the tax rate before the said notification and after notification? 2. The Gujarat Authority for Advance Ruling (herein after referred to as the AAR ), vide Advance Ruling No. GUJ/GAAR/R/2018/8 dated 21.03.2018 = 2018 (5) TMI 1181 - AUTHORITY FOR ADVANCE RULING - GUJARAT , ruled as follows:- The supply of services by M/s. Rashmi Hospitality Services Private Limited (GSTIN 24AACCR523 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he appellant is in the nature of outdoor catering. The appellant submitted that in terms of Section 46 of the Factories Act, 1948, it is mandatory for every factory to have a canteen, and it is this canteen in the factory of the company, which the appellant has been operating. It is submitted that as the statute itself envisages that food that can be served in a factory is only by a canteen, the supply made by the appellant as a canteen operator cannot be regarded as an outdoor catering. The appellant further submitted that the term outdoor catering , mess and canteen have not been defined in the statute and referred to the dictionary meanings of these terms. It is submitted that catering does not involve the supply of food / beverages on a daily basis whereas in case of canteen, the supply is virtually on a daily basis to the same set of people. 4.3 The appellant submitted that the AAR referred and relied upon the definition of catering and outdoor catering , as provided under the erstwhile Chapter V of the Finance Act, 1994 to hold that the supply being made by the appellant is that of outdoor catering, and also placed reliance on the judgement on the Hon ble Allahab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e such supply or service is for cash, deferred payment or other valuable consideration, provided by a restaurant, eating joint including mess, canteen, whether for consumption on or away from the premises where such food or any other article for human consumption or drink is supplied, other than those located in the premises of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes having declared tariff of any unit of accommodation of seven thousand five hundred rupees and above per unit per day or equivalent. 2.5 Provided that credit of input tax charged on goods and services used in supplying the service has not been taken [Please refer to Explanation no. (iv)]] Explanation . - declared tariff includes charges for all amenities provided in the unit of accommodation (given on rent for stay) like furniture, air-conditioner, refrigerators or any other amenities, but without excluding any discount offered on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vii) 9 - (viii) 14 - (ix) 9 - 8.1 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. 8.2 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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