The ruling clarifies that carbonated drinks served as part of restaurant service are composite supplies taxable at 18% GST, and not 28%.

The Tribunal observed that revenue has compared the figures reflected in the ST-3 returns and figures reflected in Form 26AS statement and raised the demand without further examining the reasons for the difference in the two statements.

The Court pointed out that the ED and the adjudicating authority were actively functioning during the COVID period, having issued the attachment order, filed complaints, issued show cause notices, and conducted hearings. Therefore, the plea of practical impossibility due to the pandemic was found to be untenable.