Page 123 - GSTL_14th May 2020_Vol 36_Part 2

2020 ] IN RE : GURUKRUPA HOSPITALITY SERVICES 225
5.4 On perusal of the copy of the agreement submitted by the applicant,
it is evident that the service recipient has engaged the applicant for running of
the canteen for their workers/employees. The rates for the meal, snacks, tea have
been fixed and payable by the recipient. The menu is required to be decided by the
canteen committee of the recipient. It is, therefore, evident that the applicant,
who is caterer, is providing service from other than his own premises to the re-
cipient. Therefore, the nature of service provided by the applicant is that of “out-
door catering service”.
5.5 Even though the meal, snacks, teas are provided to and consumed
by the workers/employees of the recipient, it is clear from the foregoing discus-
sion that the applicant is providing service to the recipient and not to work-
ers/employees of the recipient. From the nature of service provided by the appli-
cant, as is evident from the copy of agreement, it is clear that it is not in the na-
ture of service provided by a restaurant, eating joint including mess, canteen.
Therefore, the clarification issued, vide Circular No. 28/02/2018-GST, dated 8-1-
2018, is not applicable.
5.6 In erstwhile Service Tax regime, a similar issue was decided by
Hon’ble High Court of Allahabad in the case of Indian Coffee Workers’ Co-Op. Soci-
ety Ltd. v. CCE & ST, Allahabad [2014 (34) S.T.R. 546 (All.)], wherein it was held as
follows -
“8. Analyzing the provisions of clause (24) of Section 65 of the Finance
Act, 1994, in order to be a caterer, a person should be one who supplies
food, edible preparations, beverages (alcoholic or non-alcoholic) or crockery
and similar articles or accoutrements for any purpose or occasion. The sup-
ply may be made directly or indirectly. Consequently, there has to be, first-
ly, a supply of food, edibles, beverages or crockery and similar articles or
accoutrements. Secondly, this supply may be for any purpose or occasion.
A purpose is an effectuation of a particular object. An occasion is an event
defined with reference to time which may take place either as an isolated
occurrence or be sporadic or periodical. Thirdly, the supply may be directly
by the person himself or indirectly through another. In order to be an out-
door caterer within the meaning of clause (76a), a person must, at the out-
set, be a caterer. Clause (76a) provides a statutory definition of who is re-
garded as an outdoor caterer. A caterer is an outdoor caterer because ser-
vices in connection with catering are provided at a place other than his
own. The use of the expression ‘in connection with catering’ broadens the
ambit of the definition by bringing within its purview not merely a service
of catering but a service which has a connection with catering. The place
where the service is to be provided must be a place other than that of the
caterer himself. The inclusive part of the definition includes a place which
may be provided to the caterer by the person receiving the service either by
an agreement of tenancy or otherwise.
9. In the present case, the assessee is a caterer. The assessee is a person
who supplies food, edibles and beverages for a purpose. The purpose is to
cater to persons who use the facility of a canteen which is provided by
NTPC or, as the case may be, by LANCO within their own establishments.
NTPC and LANCO have engaged the services of the assessee as a caterer.
The assessee is an outdoor caterer because the services which he provides
as a caterer are at a place other than his own. The place is provided by
GST LAW TIMES  14th May 2020  123