Case Law Details
Woodlands Hotels Pvt. Ltd. Vs C.C.E & C.S.T. (CESTAT Bangalore)
A snack cannot be equated to a high tea; for that logic, it comes rarely closer to a ‘substantial and satisfying meal’. Therefore, it is to be concluded that snack cannot fulfill the conditions of the food being substantial and satisfying. Therefore, we are of the opinion that the ratio of the judgments cited by the appellants is not applicable to the instant case. Whereas the issue discussed in the ‘Welcome Hotel’ was high tea which is normally a replacement for dinner; the issue in the impugned case is a ‘snack’ which is normally eaten between the meals. Snack cannot be a substantial and satisfying meal.
FULL TEXT OF THE CESTAT JUDGMENT
M/s. Woodlands Hotel (P) Ltd. (the appellants) runs a chain of hotels. The appellants were served a SCN dated 10.06.2005 alleging that they have wrongly availed the Notification of existing Service Tax to hotels during 20.12.2001 to 08.07.2004 and they failed to pay Service Tax for the period from 09.07.2004 to 3 1.01.2005. The SCN was confirmed by Order-in-Original No. 3/2006 (JCT) dated 27.01.2006 for an amount of Rs.1,26,794/- while imposing interest and penalty. On an appeal filed by the appellants stating that during the period from 20.12.2001 to 08.07.2004 they have availed the benefit of Notification while providing only tea and snacks (without substantial and satisfying meal). The Commissioner (A) vide Order-in-Appeal No. 127/2007 dated 24.12.2007 has confirmed the order of Joint Commissioner stating that tea and snacks is not a substantial meal as is understood by common people.
2. The Counsel for the appellants submitted that the Tribunal in the case of Welcome Hotel Vs. CCE Vadodara- 2009 (13) STR 375 (Ahmedabad) held that the high tea provided by the appellants wherein was a satisfying meal.
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