PVR Wins Service Tax Case: Food Sales in Cinemas Not ‘Service,’ Rules CESTAT
The CESTAT ruled that PVR Cinemas’ sale of food and beverages does not qualify as a taxable service under the Finance Act, 1994. The tribunal upheld that transactions involve mere sale of goods, not services, as customers buy packaged/reheated items without added service elements. The decision aligns with earlier rulings, distinguishing it from Gold Class services (where waiters serve). Service tax demand was quashed, reinforcing industry relief.
M/s. PVR Limited VERSUS Principal Commissioner of Goods & Service Tax & Central Excise, Delhi
Complete Judgment: