No Service Tax on Supply of Food Stuff by Private Universities to Students: Himachal Pradesh HC rules in favour of JUIT

The Himachal Pradesh High Court has ruled that private universities are not liable to pay service tax on the supply of foodstuff to their students. This judgment, in favor of Jaypee University of Information Technology (JUIT), clarifies a long-standing ambiguity regarding the taxability of catering services provided by educational institutions. The court reasoned that such provisions are integral to the overall educational service and not a separate taxable activity. This decision provides significant relief to private universities, potentially reducing their operational costs and preventing unwarranted tax demands. It establishes a precedent that views campus catering as part of the broader educational offering.