Service Tax Not Applicable on Takeaway orders: Madras HC

The Madras High Court has ruled that service tax would not be applicable on takeaway orders in hotels and restaurants.

Hon’ble Anita Sumanth passed this order while allowing a batch of petitions that were moved by several popular restaurants chains, including Sangeetha Hotels, Anjappar and Thalappakatti,

The petitions challenged the notice issued by the Commissioner of GST and central excise demanding service tax on takeaway orders.

According to the Bench, such provision of drink and food taken away from a restaurant amounts to the only sale and not consumption at a restaurant attracting service tax.

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