Office of the Deputy Commissioner
Central Excise& Service Tax Division
SCO 48-49 , Sector 17-A, Chandigarh
- No .ST-20/STD/Misc./Sevottam/62/12/4693 Dated : 13-08-2015
M/s Apex Restaurants Pvt. Ltd
SCO , Sector-26,
Subject:- Clarification on levy of Service Tax on food sold by way of Pick-up or Home Deliveries-C/regarding
Please refer to your office letter dated 22.07.2015 (received in this office on 23.07.2015) on the above cited subject where under Clarification as to whether Service Tax is payable on food sold by way of Pick-up or Home deliveries has been sought.
It is clarified that in case of the transaction involving Pick -up or the Home Deliveries of the food sold by the Restaurant. the dom1nant nature of the transact ion is that of sale and not serv1ce as the food 1s not served at the Restaurant and further no other element of service which is offered at the restaurants, be it ambience , live entertainment , if any, air conditioning, or personalized hospitality is offered. The Service Tax can be levied if there’s an element of ‘Service’ involved which would typically the case where food is served in restaurant.
The above transaction is not liable to Service Tax , being sale nature, only if, no amount is charged for such free delivery of food.
This is issued with prior approval of the Additional Commissioner.