2025 (3) TMI 1450

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.... terms of Section 65B(44) and Section 66E of the Finance Act, 1994. 2. The issue is no longer res integra and has been decided in the case of the appellant themselves in the case of M/s. PVR Limited, Shri Nitin Sood, Shri Ajay Bijli and Shri Brijesh Arora Vs. CST, New Delhi [2023(12) TMI 81-CESTAT, New Delhi (Final Order No.51577-51580/2023 dated 30.11.2023)] holding that the supply of food and beverages in the cinema hall does not involve any service element and is merely transaction of sale. The period involved in the said order was from 2013-2014 to 2015 and the present appeal involves the subsequent period from 2015-16 to June, 2017. The facts and the issue being same, the present appeal is squarely covered by the aforesaid decision ....

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....is so short that it is not possible for the viewers to rush outside the cinema complex to buy food stuff and eat there. Just for making it convenient, the cinema complex provides some packaged or ready to eat food items and drinks. The choice of food stuff or soft drink is limited and the viewers have to accept from what is available. There is another aspect of the matter which is peculiar to the cinema complex, that these counters providing food items are not open to the public at large like any snack bar or restaurant but only those who have bought a ticket for viewing the movie can access them. Thus, the supply of food items and drinks to viewers through the counters in the cinema halls is equivalent to the transaction involved in sale o....

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....d beverages in a transaction of this nature. There is no privity of contract between two petitioner company and the passengers travelling in trains." 14. The learned Counsel for the appellant has referred to a decision of Court of Justice (Third Chamber) dated 10.3.2011 in Finanzamt Burgdorf V Manfred Bog (C-497& 499/09) which specifically dealt with the issue whether the various activities of supplying food or meals prepared for immediate consumption in cinema halls constitute supply of goods or supply of services and observed that all the circumstances in which the transaction takes place must be taken into account in order to ascertain its characteristic elements and identify its predominant elements. The Court comparing the sam....