The order was passed on a plea filed by Haldiram Marketing Private Limited challenging a show cause notice issued by the Commissioner of Central Goods & Services Tax (CGST) on September 28, 2020 demanding payment of ₹23 crores as service tax, which it had failed to pay for take-away services.
This amount charged was also inclusive of the rent that the company received from associated enterprises.
The authority contended that the appellant was providing services in respect of take-away orders by way of preparing and packaging food items for the convenience of customers. It claimed that the customers availed services of the chef by placing customized orders and that it was not the case where theappellant was merely purchasing and selling food.
As far as rent was concerned, it stated that appellant had sublet a certain portion of the space rented by it from Delhi International Airport Limited (DIAL) to its associated enterprise, and on such account, the company received one-third portion of the rent from the associated enterprise. Hence, the same was taxable, it was contended.
Based on these contentions, the Commissioner, CGST had passed an order on March 11, 2022 asking Haldiram to pay ₹ 20,12,46,762 with interest and penalties. However, the demand of ₹ 2,96,98,555 was dropped on account of cum-tax benefit with respect to the demand on take-away of food items.
Source: Barandbench
