GLIMPSE OF A LATEST VERDICT* *W.P. 28789 & 28095 of 2019; 13469 of 2020; 1748 & 5935 of 2021* Anjappar Chettinad A/C Restaurant Etc. Vs. Joint Commissioner Etc. Dated: 20.05.2021

*GLIMPSE OF A LATEST VERDICT*

*W.P. 28789 & 28095 of 2019; 13469 of 2020; 1748 & 5935 of 2021*
Anjappar Chettinad A/C Restaurant Etc. Vs. Joint Commissioner Etc.
Dated: 20.05.2021

*Hon’ble Justice Anitha Sumanth* was pleased to allow the Writ Petitions in the matter relating to *“Whether Take-away Food from Restaurants attract Service Tax”* and held the following:

i) As per Federation of Hotels and Restaurants Association V. Union of India [2016 (44) ELT 3], the sale of food and beverages and drinks (including sale of beverages and intoxicating drinks) involves both the aspects of sale as well as service.
ii) By virtue of Notification 3 of 2013-ST dated 01.03.2013, the levy of service tax was restricted only to those restaurants, eating joints or mess, that have the facility of air-conditioning or central heating in any part of the establishment at any time during the year.
iii) Not all services rendered by restaurants are taxable. The sale of food and drink, services of selection and purchase of ingredients, preparation of ingredients for cooking and the actual preparation of the food and drink would not attract the levy of tax. Only those services commencing from the point where the food and drinks are collected for service at the table till the raising of the bill, are taxable as service tax.
iv) The provision of food and drink to be taken-away in parcels by restaurants tantamount to the sale of food and drink and therefore does not attract Service Tax.

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