https://www.taxtmi.com/caselaws?id=447225 CESTAT Chennai dismissed the Department's appeal challenging exemption from service tax on restaurant services. The restaurants located within Hotel Sangam premises in Trichy and Thanjavur were clearly demarcated from permit rooms and did not hold separate licenses to serve alcoholic beverages. Since the restaurants failed to satisfy the condition of serving alcoholic beverages required under the Restaurant Services definition, they did not fall under taxable restaurant services category. The tribunal held that Department's interpretation linking hotel's liquor license to restaurant services was legally incorrect. Additionally, Department's appeal contradicted its own Circular No. 139/8/2011-TRU, which is binding on revenue authorities per SC precedent. The original order granting exemption was upheld. en-us Tue, 19 Dec 2023 00:00:00 +0530 Thu, 21 Dec 2023 09:28:14 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=447225 CESTAT Chennai dismissed the Department's appeal challenging exemption from service tax on restaurant services. The restaurants located within Hotel Sangam premises in Trichy and Thanjavur were clearly demarcated from permit rooms and did not hold separate licenses to serve alcoholic beverages. Since the restaurants failed to satisfy the condition of serving alcoholic beverages required under the Restaurant Services definition, they did not fall under taxable restaurant services category. The tribunal held that Department's interpretation linking hotel's liquor license to restaurant services was legally incorrect. Additionally, Department's appeal contradicted its own Circular No. 139/8/2011-TRU, which is binding on revenue authorities per SC precedent. The original order granting exemption was upheld. Case-Laws Service Tax Tue, 19 Dec 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=447225