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Catering service would fall under clause (i) of Notification No. 11/2017 as amended and with effect from 14.11.2017

Shanti Prime Publication Pvt. Ltd.

Classification of Service—Catering service—In the instant case, the question before authority is that Whether the catering services provided by the Applicant under B2B Model and B2C Model are to be classified as canteen/restaurant services under Entry. No. 7(i) of the Notification No. 11/2017 dated 28th June 2017 as amended by the Notification No. 46/2017- Central Tax (Rate) dated 14th November 2017 or as outdoor catering services under Entry. No 7(v) of the said Notification?

Held that—It is clear that the services supplied by the applicant in normal course do not appear to be covered under clause (v) of the N/N. 11 /2017-Central Tax (Rate) dated 28th June, 2017. From a reading of clause (v) before and after the amendment it is seen that the word 'outdoor catering' does not find a mention post the amendment. Hence it can be inferred that the said clause post the amendment made considers outdoor catering as a Supply, by way of or as part of any service, of goods, being food or any other article for human consumption or any drink, at Exhibition Halls, Events, Conferences, Marriage Halls and other outdoor or indoor functions that are event based and occasional in nature.

The applicant has clearly stated that they are providing services only to industries and corporates and for their employees - the clients of the applicant are providing space, etc. to the applicant for supply of catering services and the services are supplied by the applicant at the clients' premises.

The service being provided by the applicant would be covered under Serial No. 7 Heading 9963(i) or (iv)of Notification No. 11/2017 dated 28.06.2017 as the applicant can be said to be providing the services of a canteen, but as to the applicant falls under Sr. No.(i) or (iv) of the said Notification would depend on whether the canteen has the facility of is air conditioning or central air-heating in any part of the establishment, at any time during the year, as the applicant has not clarified the same anywhere. The said clause (i) has been amended by Notification No. 16/2017 - The amendment has also done away with the condition of "Supply, provided by a restaurant, eating joint including mess, canteen, neither having the facility of air-conditioning or central air-heating in any part of the establishment, at any time during the year and therefore the services of the applicant, in view of amendment vide Notification No. 46/2017 dated 14.11 2017 would fall under Serial no. 7(i) of this amended Notification.

Thus, the activity of the applicant would fall under clause (i) of Notification No. 11/2017 as amended and with effect from 14.11.2017 i.e the date on which Notification No. 46/2017- Central Tax (Rate) came into effect.

Ruling— In view of the observations and discussions made above the activity undertaken by the applicant in the subject case would be classified as canteen services under Entry. No 7(i) or (iv) of Notification No. 11/2017 dated 28th June 2017 depending on whether their canteen has the facility of air air-conditioning or central air-heating in any part of the establishment, at any time during the year. However as per amended Notification No. 46/2017- Central Tax (Rate) dated-14th November 2017, their service would fall under Sr. No. 7(i) of this amended Notification. [2018] 2 TAXLOK.COM 308 (AAR-Maharashtra)