1994 (7) TMI 282 - SC - VAT and Sales Tax

Whether in a hotel or restaurant does not constitute a sale of food for the purpose of levy of sales tax? Held that - Appeal allowed. Set aside the impugned order of the High Court dated March 19, 1982, allow the review applications filed by the Commissioner of Sales Tax, U.P., Lucknow, before the High Court and set aside the order dated December 13, 1979, passed by the High Court in sales tax revisions. We remand the case to the Sales Tax Officer concerned who will hold the assessment proceedings afresh in accordance with law.

Summary

The Supreme Court clarified that the sale of food in eating houses or restaurants is subject to sales tax. The court allowed the review applications filed by the Commissioner of Sales Tax, U.P., and remanded the case for fresh assessment proceedings. The appeals were allowed with no costs.