Activity of “Take Away” or “Home Delivery” is Sale of Food, No Service Tax: CESTAT grants Relief to Bikanervala

In a recent ruling, the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) provided relief to Bikanervala Foods by determining that their activities of takeaway and home delivery are classified as the sale of food rather than a service. This decision negates the applicability of service tax on these transactions. Bikanervala Foods had contested a service tax demand imposed by authorities, arguing that their business model constituted the sale of goods. The tribunal's judgment aligns with this view, thus exempting their takeaway and delivery services from service tax liabilities.