TMI Blog2019 (7) TMI 767X X X X Extracts X X X X X X X X Extracts X X X X ..... . The amount retained by the appellant is for, as they have kept their services available for the accommodation, and if in any case, the customers could not avail the same, thus, under the terms of the contract, they are entitled to retain the whole amount or part of it - the retention amount (on cancellation made) by the appellant does not undergo a change after receipt - no service tax is attracted under the provisions of Section 66 E(e) of the Finance Act. Taxability - service tax on food served in the room - HELD THAT:- The service tax can be levied if there is an element of Service involved which would typically be the case where the food is served in restaurant. The element of service is not involved and it amounts to sale and do ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd when they receive advance, availing the permissible abated value. It is the case of the Revenue that upon cancellation by the customers, the gross amount received by the appellant qualifies the receipt under Section 66 E (e), which is defined as under:- Following shall constitute the declared services viz.:- agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act; and chargeable on full value and not on abated value . 4. Ld. Commissioner (Appeals) in confirming the demand under this head has observed that retention of such cancellation charges is not against the provisions of intended services but for not availing the said services by the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /or beverages by way of room service liable to service tax? It is clarified that when the food is served in the room, the service tax cannot be charged under the restaurant service as the service is not provided in the premises of the air-conditioned restaurants with a licence to serve liquor, and also the same cannot be charged under the Short Term Accommodation head, if the bill for the food raised separately and it does not form part of the declared tariff. Also the similar clarification was issued by the Dy. Commissioner of Central Excise Service Tax Division, Chandigarh vide his letter No.ST-20/STD/Misc./Sevottam/62/12 dated 13.08.2015, wherein clarifying the levy of service tax on food sold by way of Pick-up or Home Deliveries, it i ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
