Service tax on cinema counter food sales-packed or reheated items treated as sales; tax demand, interest set aside.

Service tax on cinema counter food sales-packed or reheated items treated as sales; tax demand, interest set aside. https://www.taxtmi.com/highlights?id=95256 Service tax liability on sale of food items at cinema counters was in issue. The tribunal held that supply of food items in packed form or after mere reheating constitutes a sale with no discernible element of service, and therefore does not fall within the taxable service category for levy of service tax. Applying the same legal position to the present facts, the demand for recovery along with interest and consequential liability could not be sustained. Accordingly, the impugned order was set aside and the appeal was allowed. - CESTAT en-us Mon, 22 Dec 2025 07:49:17 +0530 Mon, 22 Dec 2025 07:49:18 +0530 TaxTMI RSS Generator Service tax on cinema counter food sales-packed or reheated items treated as sales; tax demand, interest set aside. https://www.taxtmi.com/highlights?id=95256 Service tax liability on sale of food items at cinema counters was in issue. The tribunal held that supply of food items in packed form or after mere reheating constitutes a sale with no discernible element of service, and therefore does not fall within the taxable service category for levy of service tax. Applying the same legal position to the present facts, the demand for recovery along with interest and consequential liability could not be sustained. Accordingly, the impugned order was set aside and the appeal was allowed. - CESTAT Highlights Service Tax Mon, 22 Dec 2025 07:49:17 +0530 https://www.taxtmi.com/highlights?id=95256