Thursday, December 15, 2016

Service Tax on AC Restaurants is unconstitutional

The High Court of Kerala held that levy of service tax on Air Conditioned Restaurants is unconstitutional since when food is supplied as part of any service, such transfer would be deemed as sale. Thus, there is no component of service which could be charged to service tax when food is supplied by Air Conditioned Restaurant.
Kerala Classified Hotels & Resorts Association v. Union of India. [2016] 75 taxmann.com 272

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