2025-VIL-560-CESTAT-CHE-ST
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SERVICE TAX CESTAT Cases

Service Tax - Outdoor Catering, Renting of Immovable Property, Restaurant Services, SEZ Exemption, Cum-tax benefit - The appellant is providing restaurant service. Based on a survey, it was found that the appellant had also provided outdoor catering services, received rental income and amenities charges, and made supplies to SEZ units, on which service tax was not paid. Show cause notices were issued to the appellant, and the demand was confirmed by the Adjudicating Authority - Whether the appellant had service tax liability when the taxable services rendered were only with respect to renting of immovable property and the turnover was less than the threshold limit - HELD - The issue of calculating the threshold limit in terms of Notification No. 6/2005-ST dated 01.03.2005, as amended, was not examined by the lower authorities. The matter was remanded to the Original Authority for determination afresh - The Tribunal set aside the impugned orders and remanded the matters back to the Original Authority for de novo adjudication, following the principles of natural justice and issuing a well-reasoned speaking order - Ordered accordingly - Whether the renting of immovable property to Tamarai Hotels (P) Ltd. was not taxable under the "renting of immovable property service" as per the Explanation 1(iv)(d) of Section 65(105)(zzzz) of the Act - HELD - The terms of the contract/agreement entered into by the appellant with Tamarai Hotels (P) Ltd. were not available for examination - The taxability of the service, if any, needs to be discussed in terms of the conditions of the contract and has to be examined afresh with a copy of the same - Whether the outdoor catering and restaurant services provided by the appellant were not taxable as they were mere arrangements for supply of food to the clubs, and the invoices raised for the supply of food reflected VAT charged - HELD - The lower authorities' orders were cryptic and did not analyze the reason for concluding how the contract answers the requirements of law. The Tribunal remanded the matter to the Original Authority for fresh examination, considering the appellant's claims that the supplies were item-wise food sales, on which VAT was paid - Whether the Adjudicating Authority wrongly determined the taxable value for restaurant services by including the Sodexo sales, Swiggy sales, bakery sales, etc., which are not exigible to service tax, and the appellant had paid excess tax during 2015-16 which should be adjusted - HELD - The lower authorities did not discuss this issue, and hence, it deserves to be examined afresh by the Original Authority - Whether the supplies made to SEZ units were exempted from service tax under the provisions of the Special Economic Zones Act, 2005- HELD - The SEZ Act provides for exemption of goods or services exported out of, or imported into, or procured from the Domestic Tariff Area, subject to the prescribed terms, conditions, and limitations. The Tribunal provided the appellant one more chance to produce the requisite documents in support of their claim for exemption under the SEZ Act - Whether the extended period for demanding service tax was not invocable as the issue involved was one of classification and interpretation of legal provisions - HELD - The lower authorities had alluded to evidence showing enrichment by the appellant based on public money collected as taxes. However, since the matter is being remanded, the Tribunal felt that this issue can also be examined afresh by the Original Authority - Whether the appellant is entitled to the benefit of cum-tax valuation as per the decision in the case of Advantage Media Consultants - HELD - The Tribunal concurred with the views expressed in the 'Advantage Media Consultant' case, but observed that one of the allegations against the appellant was that they collected service tax from their customers but did not pay the same to the exchequer - This factual matter needs to be examined by the lower authority before granting the benefit of cum-duty valuation.
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