Canteen services in factory-exempt form service tax

A Big Relief from CBEC!!!!

Vide Notification no. 14/2013-ST, dated 22-Oct-2013, CBEC has enlarged the Mega exemption list(i.e. Notification no. 25/2012-ST) by introducing a new entry no. 19A in the said list, which exempts the following additional service from the purview of service tax:

“Services provided in relation to serving of food or beverages by a canteen maintained in a factory covered under the Factories Act, 1948 (63 of 1948), having the facility of air-conditioning or central air-heating at any time during the year.”

Terms used in Factories Act,1948:

"Factory" means any premises including the precincts thereof-

 (i) whereon ten or more workers are working, or were working on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on with the aid of power, or is ordinarily so carried on, or

 (ii) whereon twenty or more workers are working, or were working on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on without the aid of power, or is  ordinarily so carried on.

“Manufacturing Process” means any process for-

 (i) making, altering, repairing, ornamenting, finishing, packing, oiling, washing, cleaning, breaking up, demolishing, or otherwise treating or adapting any article or substance with a view to its use sale, transport,  delivery or disposal, or

(ii) pumping oil, water, sewage or any other substance; or]

 (iii) generating, transforming or transmitting power; or

 (iv) composing types for printing, printing by letter press, lithography, photogravure or other similar process or book

 binding;

 (v) constructing, reconstructing, repairing, refitting, finishing or breaking up ships or  vessels;

(vi) preserving or storing any article in cold storage;

The notification has been enclosed herewith for reference.