Grant-in-Aid for Food Processing Unit Not Taxable as Service: CESTAT

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Grant-in-Aid for Food Processing Unit Not Taxable as Service: CESTAT

Indirect Taxes

Published on

08/04/2026

By Mariya Paliwala

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The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi has held that grant-in-aid received from the Government for setting up a food processing unit cannot be treated as consideration for taxable service, thereby setting aside a service tax demand of Rs. 6.59 lakh along with interest and penalty imposed on Daawat Foods Limited….

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Mariya Paliwala https://www.jurishour.in/

Mariya is the Senior Editor at Juris Hour. She has 7+ years of experience on covering tax litigation stories from the Supreme Court, High Courts and various tribunals including CESTAT, ITAT, NCLAT, NCLT, etc. Mariya graduated from MLSU Law College, Udaipur (Raj.) with B.A.LL.B. and also holds an LL.M. She started her career as a freelance tax reporter in the leading online legal news companies.

Grant-in-Aid for Food Processing Unit Not Taxable as Service: CESTAT

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