CESTAT says Catering Exemption Cannot Be Denied by Isolating Menu Items

The assessee, an outdoor caterer, had availed the benefit of Notification No.20/2004-ST while paying service tax on 50% of the gross value. CESTAT held that the Department could not deny the benefit merely by isolating tea, coffee and other refreshments from the overall catering arrangement, particularly where VAT had already been paid on the value of goods. The extended period and penalties also failed as the dispute was essentially interpretational and the assessee had disclosed its records.