TaxTMI 
TaxTMI 
2025 (12) TMI 1249
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....T Intelligence [DGGST] is assailed by M/s. Cinepolis India Private Ltd. [the appellant] in this appeal. In the impugned order, demand of Rs. 18,84,18,323/- has been confirmed as Service tax recoverable from the appellant under section 73 of the Finance Act, 1994 [Finance Act] along with interest under section 75 of the Finance Act and penalty of Rs. 16,45,68,787/has been imposed under section 78 of the Finance Act. 2. We have heard learned counsel for the appellant and the learned authorized representative for the Revenue and perused the records. The appellant sets up, operates and manages a chain of multiplexes in which it operates cinema halls. The appellant's multiplexes also has counters where food and beverages such as pop corn, sam....
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....dismissed accordingly. 4. However, the question of law, if any is kept open. 5. Pending application(s), if any, stand disposed of." 5. Learned counsel further submits that this decision was followed by this bench in Final Order No. 50440/2025 dated 26.3.2025 passed in Service Tax Appeal No. 50250 of 2021. He, therefore, prays that the appeal may be allowed and the impugned order may be set aside. 6. Learned authorized representative for the Revenue reiterated the impugned order. 7. We do find that the issue involved in this appeal is squarely covered by the order of this bench dated 30.11.2023 in PVR Ltd. Relevant portions of the order are reproduced below. "12. The provisions of section 65B (44) and 66E ....
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.... 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 of take away/packaged food. 13. The other principle which emerges from the aforesaid decisions is the test to determine the dominant or incidental purpos....
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.... 14. 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 (C497& 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 same with the restaurant transactions where the provision of food is only one component and in which services largely predominate, they are regarded as supplies of se....