9911796707
TMI Blog1970 (3) TMI 120X X X X Extracts X X X X X X X X Extracts X X X X ..... meaning of the Orissa Sales Tax Act and as such liable to be assessed under the said Act." 2.. The facts on the basis of which the aforesaid two questions have been framed, as referred to in the reference order, are not disputed before us. The Oberoi Palm Beach Hotel at Gopalpur in the district of Ganjam is a registered dealer under the Orissa Sales Tax Act. it carries on the business of hotel-keeping. A composite charge for lodging and boarding is made from each boarder at Rs. 25 to Rs. 30 for a single room and Rs. 45 to Rs. 50 for a double room per day. This charge includes service of providing with residential accommodation, food, linen, hot and cold water etc. If a boarder fails to take his meals at the prescribed hours at the prescr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nstrued accordingly. Thus, in order to constitute "sale" there must be transfer of property in goods which would always constitute movable property. The impugned agreement of the boarders with the hotelier, the terms of which have already been indicated, would show that there was no separate agreement for sale of food. Supply of food constituted an integral part of the agreement whereunder many other necessary services were also supplied. The value of food was not separately indicated in the agreement. The customer was not entitled to any rebate or reimbursement for non-user of the food at any time. He had not the right to transfer the food to some other place to be consumed by himself. He could not also gift away the food to somebody els ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Associated Hotels of India Ltd. v. The Excise and Taxation Officer, Simla, and Another[1966] 17 S.T.C. 555. Exactly on identical facts his Lordship came to the conclusion that there was no separate agreement for sale and the supply of foodstuff constituting an integral part of an agreement of the aforesaid nature does not constitute sale. The judgment of the Single Judge was affirmed in appeal, in State of Punjab and Another v. Associated Hotels of India Ltd.[1967] 20 S.T.C. 1. 6.. On the aforesaid analysis we would answer the first question in the negative. The second question is irrelevant as the same concept is involved in the first question. We answer the second question in the negative. 7.. In the result, the references are accepte ..... X X X X Extracts X X X X X X X X Extracts X X X X
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