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Informative

CESTAT Rules Food Sales at PVR Cinemas Counters Not Taxable as Services, Except in Gold Class Category

Update / Judgement Date

11 Apr 2025

Source

Taxscan

Author

Team — WCP Legal Desk

Reading Time

1 min read

Excise, VAT & Custom

CESTAT (Customs, Excise, and Service Tax Appellate Tribunal) ruled that food sales at PVR Cinemas' counters are generally not taxable as services, except for sales made in the Gold Class category. The tribunal differentiated between the primary activity of cinema exhibition and the ancillary sale of food. It considered food sales in regular cinema halls as incidental to the main service, whereas the experience in Gold Class might include a higher service element related to food.