VAT not leviable on incidental supply of food to students by registered public trust imparting education

Bharatiya Vidya Bhavan’s Residential Public School Vs The State of Andhra Pradesh (Andhra Pradesh High Court)

Andhra Pradesh High Court held that main activity of the petitioner is imparting education with a non-commercial motive. Running of hostel and supplying food at subsidized price is incidental activity. Accordingly, transaction of supply of food items and beverages to students cannot be treated as sale of goods and hence VAT not applicable.

Facts-

Petitioner seeks writ of mandamus declaring the action of respondents in directing the petitioner’s school to obtain dealer registration under Andhra Pradesh Value Added Tax (AP VAT) Act, 2005 and their action in assessing the petitioner’s school under the said Act for the period 01.04.2005 to 31.12.2005 vide order dated 08.03.2006 is arbitrary, illegal and violative of Articles 14, 19, 21A and 265 of the Constitution of India and to set aside the same and pass such other orders.

Conclusion-

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