liability of service tax in case of sales tax bills

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CA Jeen paul (Querist)
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07 October 2008 Gentlemen
x is a pvt ltd co running a convention centre in india. they prepare food at their kichen and serves at the convetion halls. x charges food at per head rate say Rs 500/- per head. they makes \kvat bills and remit the vat at 0.50% compounded rates. they does not pay services tax.
x never is never cateres outside thier premises so they are not coming under the perview of the definition outside catering.
kindly advise me what is the service tax implication on the above trasnasction?

PIYUSH JAIN

PIYUSH JAIN (Expert)
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08 October 2008 Dear X is not covered under outdoor caterers but he is covered under convention services in which he can claim rebate of 40% of gross amount charged for convention inlusive of catering.

CA Jeen paul

CA Jeen paul (Querist)
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08 October 2008 answer is very general.
x charges whole amount as food sales chargeable to KVAT. wanted to clarify that whether sales taxed amount is agian laible to service tax based on the supreme court decision on Imagic creative (p) Ltd Vs. Commisioner of commercial taxes and others (2008) 2 scc 614

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