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July 2015

[2015-TIOL-1184-CESTAT-MUM] Alfa Laval (India) Ltd. Employees Co-operative Consumers Society vs. Commissioner of Central Excise, Pune-I

By Puloma Dalal, Jayesh Gogri, Mandar Telang Chartered Accountants
Reading Time 1 mins
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A cooperative society of members being employees of a company engaged in preparation and serving of food to the employees are a provider of catering service.

Facts:
Appellant is a co-operative society of employees of a company and is engaged in making food and serving the same to its members being the employees of the company. All the items required for preparation of food, utensils, space, water and electricity is provided by the company and the payments for the expenses incurred were received from the company. Revenue contended that the services qualify under the category of “Outdoor Catering services”

Held:
The Tribunal stated that it is undisputed that the Appellant is a separate entity in the eyes of law and is engaging persons for preparation and serving food though in the premises of their client being the company. Further, the agreement with the company specified rendering of specialized services for their employees. Hence, the contention that the services are provided by them to their own employees is not correct as they are under a contractual obligation to provide catering services to the company and accordingly the appeal is rejected.

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