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TMI Blog1980 (6) TMI 112X X X X Extracts X X X X X X X X Extracts X X X X ..... r included similar transactions at M/s. Sweekar Hotel which is said to be a branch of the main hotel at Kolar. The respondent preferred two appeals before the Deputy Commissioner of Commercial Taxes who reduced the turnover to some extent. Aggrieved by the said orders of the appellate authority, the respondent preferred two second appeals before the Karnataka Appellate Tribunal. Before the Tribunal, the respondent placed reliance on the judgment of the Supreme Court in Northern India Caterers (India) Ltd. v. Lt. Governor of Delhi[1978] 42 S.T.C. 386 (S.C.). in which the Supreme Court had held that supply of food-stuffs in a hotel or restaurant accompanied by service does not constitute sale as defined under section 2(g) of the Bengal Financ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cted to the addition of entire turnover. The Tribunal relying on a decision in Northern India Caterers (India) Ltd. v. Lt. Governor of Delhi[1978] 42 S.T.C. 386 (S.C.)., held that supply of refreshments in restaurant or catering house for consumption by the visitors is part of the service and not sale, and set aside the order of the assessing authority directing to delete the disputed turnover. The question of law raised for decision of this Honourable Court: (i) Whether the Tribunal was right in holding that the supply of food and drinks by the assessee was in the nature of service and not sale? (ii) Whether the Tribunal was right in granting a relief larger than what was sought for?" (Underlining* by us). From the contents of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s when making an assessment under the relevant sales tax law and to determine upon those facts whether a sale of the food supplied is intended." The clarification made in the above observation is that if in a given case, there is only sale of food unaccompanied by any service or rendering of service is merely incidental, the transaction would be exigible to sales tax. In all other respects the view taken in the main judgment remains unaffected. These observations were made obviously for the reason that it was urged for the State that the ratio of the main judgment would be invoked by restaurant owners in those cases also, where there was only a sale of food and title passed to the customers. As the finding in this case is that the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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