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July 2014

2014 (34) STR 546 (All.) Indian Coffee Workers’ Society Ltd. vs. CCE & ST., Allahabad

By Puloma Dalal, Jayesh Gogri, Mandar Telang Chartered Accountants
Reading Time 2 mins
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Whether supply of food, edibles and beverages to persons within a canteen provided by the company would attract service tax as outdoor catering services? Held – Yes.

Facts:
Appellant entered into agreements for running and maintenance of an administrative building canteen. Appellant supplied food, edibles and beverages to the individual customers in accordance with the rate specified in the agreement. Appellant was provided a place for running the canteen by the Company. Department had contended that Appellant was providing “Outdoor catering services.”

Held:
The High Court held that supplier was an outdoor caterer by plain and literal construction of the provisions and definition, which included service provided by the caterer at a place other than his own. Once, the services of an outdoor caterer was provided to another person, its chargeability gets attracted, irrespective of extent of its consumption by the person who have engaged such service. The charge of tax in the cases of VAT was distinct from the charge of tax for service tax. VAT was paid on the sale of goods involved in the supply of food and beverages by the assessee would not exclude his liability for the payment of service tax in respect of taxable service was provided as an outdoor caterer.

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