EIH LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THE prayer in the stay petition is to dispense with the condition of dispensing with the condition of pre -deposit of Service Tax of Rs. 1,30,04,809/ - and penalty of identical amount.

(2.) The appellants are flight caterers. They prepare certain items in their factory, pay excise duty thereon and clear them. Further they make a cutlery pack and put a card showing their name in the cutlary packet to make known that they are doing the catering. Other items like dal, rice, curry, etc. are packed separately. On them, there is no brand name and these items are heated before they are served on the aircraft. On the aircraft, dal, rice etc. are heated and they are placed in the tray along with items like butter, jam etc. manufactured by other manufacturers and then it is served.

(3.) THE Counsel for the appellant submits that they are paying duty on all the items like cakes made in the factory and they are not doing any further manufacturing activity in the sky as alleged by the Revenue and there is no case for demanding excise duty.