Service tax on food delivery depends on whether the transaction's dominant character is sale or includes a service element. Transactions involving pick-up or home delivery of food are characterised as a sale, not a service, where no on-site service elements (ambience, entertainment, air conditioning, personalized hospitality) are offered; Service Tax applies only if a service element exists, and where delivery is provided free the transaction is not liable to Service Tax.
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Provisions expressly mentioned in the judgment/order text.
Service tax on food delivery depends on whether the transaction's dominant character is sale or includes a service element.
Transactions involving pick-up or home delivery of food are characterised as a sale, not a service, where no on-site service elements (ambience, entertainment, air conditioning, personalized hospitality) are offered; Service Tax applies only if a service element exists, and where delivery is provided free the transaction is not liable to Service Tax.
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