Banquet hall services

 The supply of food to guests attending function in the banquet hall cannot be termed as a service rendered by a caterer, but a service by the restaurant. The restaurant service was in vogue even prior to its inclusion in the taxable net under service tax, but it was not a taxable service. So what was the value to be adopted for payment of service tax on renting a banquet hall by an hotelier till 2011, and after that?

It is trite law that specific definition has to be preferred to general one. The terminology catering, used in the mandap keeper services, refers to catering provided in a mandap from outside and not by an hotelier with in his premises. As per section 65(24) of Finance Act, 1994, “caterer” means any person who supplies, either directly or indirectly, any food, edible preparations, alcoholic or non-alcoholic beverages or crockery and similar articles or accoutrements for any purpose or occasion; When a hotelier provides food for guests within his hotel premises, he only renders restaurant service irrespective of the place where food is supplied. The food will be supplied to guests as per their choice either at the hall, private rooms or at the specified restaurants.