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TMI Blog1980 (12) TMI 171X X X X Extracts X X X X X X X X Extracts X X X X ..... e is charged without making any break-up in the bills and if so, on what basis and at what rate? (2) Whether, on the facts and in the circumstances of the case, the applicantcompany is legally entitled to split up its turnover in respect of sale of goods and services for special reception and meetings when consolidated rate is charged? If so, on what basis and at what rate? (3) Whether, on the facts and in the circumstances of the case, the learned Financial Commissioner was justified to hold that the receipts from holding special eves were not exempt from the levy of sales tax entirely?" The questions relate to sales made by M/s. East India Hotels Ltd., in the hotel known as Oberoi Intercontinental Hotel situated on Dr. Zakir Hussain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red by the judgments in the Northern India Caterers (India) Ltd.'s case(1) decided by the Supreme Court. The learned counsel for the department also submits the same. However, it was pointed out that the initial judgment which is reported as Northern India Caterers (India) Ltd. v. Lt. Governor of Delhi [1978] 42 S.T.C. 386 (S.C.) was reviewed and the review is published as [1980] 45 S.T.C. 212 (S.C.). It is contended on behalf of the department that the judgment passed in review clearly shows that the initial judgment was limited to certain types of cases and could not apply generally. It is now necessary to refer to the actual decision of the Supreme Court and also the decision in the review petition. The initial judgment was a unanimo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he residents in its hotel as well as to casual customers who came to eat in its restaurant, and throughout it maintained that having regard to the nature of the services rendered there was no real difference between the two kinds of transactions. In both cases, it remained a supply and service of food not amounting to a sale. It is important to note that the facts alleged by the appellant were never disputed at any stage, and we find no attempt by the taxing authorities to enquire into the truth of the facts so asserted. It is in that factual context that this court examined the question whether any liability to sales tax was attracted. Our judgment rests on that factual foundation, and must be understood in that light." It may also here ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een answered by the Supreme Court in favour of the assessee. In the circumstances, the questions have to be answered somewhat differently from the way in which they have been framed. The first question regarding the splitting of the restaurant sale and the service charges does not arise as the Supreme Court has said that the entire amount is not taxable. We, therefore, decline to answer this question as the entire sale including the amount charged for supply of food and the amount charged for services rendered is to be excluded from the taxable turnover. Turning to question No. (2), which concerns the consolidated charge at receptions, meetings, etc., the same situation holds true. The entire charge both for food as well as service is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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