No Service Tax on Government Grants Being Pure Reimbursement of Expenses

Daawat Foods Limited Vs Commissioner of CGST & Central Excise (CESTAT Delhi) The appeal before the Customs, Excise and Service Tax Appellate Tribunal challenged Order-in-Appeal dated 30.03.2022, wherein a service tax demand of Rs. 6,59,000 along with interest and equal penalty was confirmed against the appellant. The appellant, a company engaged in production and supply of rice and related products, had received grant-in-aid from the Ministry of Food Processing Industries under a government scheme aimed at creation and expansion of food processing and preservation capacities. The grants we...