1992 (2) TMI 330 - HC - VAT and Sales Tax

Summary

The Delhi High Court ruled in favor of the dealer, deleting the penalty of Rs. 20,000 imposed for non-payment of sales tax. The Tribunal allowed the appeal based on a Supreme Court decision stating that meals served in restaurants and hotels were not taxable under the Sales Tax Act for the relevant assessment year. Therefore, no sales tax was payable by the dealer, and the penalty was unjustified. The Court answered the question of law in favor of the dealer and awarded costs to the dealer.