9911796707
TMI Blog1994 (12) TMI 311X X X X Extracts X X X X X X X X Extracts X X X X ..... in such cases the notification issued under the Minimum Wages Act, 1948, on February 14, 1986, made it clear that where food is supplied to workmen certain sums could be deducted from their wages depending upon the category in which they come. It is therefore contended on behalf of the petitioner that the sums deducted from the wages for supply of food is part of wages and not consideration for sale of food. But, it is the stand of the department that the said amount is in the nature of consideration for supply of food. The assessing authority took the view that though the assessee has referred to minimum charges deductible, the difference between the actual charges and from the sales effected to the customers would make up appropriate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... then the salary would have been fixed with a condition of free meals, whereas that is not so. The conditions of employment clearly specify that in the event of worker choosing to take food he would be liable to pay feeding charges at specified rate. This amounts to supply of food at a fixed rate throughout the month and deferring recovery till the payment of wages. In their view there is no difference between an outright sale and sale of food and drinks to a worker and the only difference, if any, would be that a regular bill is issued in respect of sale to a customer, whereas an adjustment of book entry is passed in respect of food supplied to workmen. 3.. The learned counsel for the petitioner relied upon a decision in State of Andhr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed, were fulfilled, be payable to a person employed in respect of his employment or of work done in such employment and includes house rent allowance, but does not include: (i) the value of: (a) any house-accommodation, supply of light, water, medical attendance, or, (b) any other amenity or any service excluded by general or special order of the appropriate Government; (ii) to (v)...................................." 6.. The Karnataka Government has issued a notification under the Act, whereby it is provided as follows: "Where food is supplied to workmen, the following sums are to be deducted from the wages in the zone mentioned against each: Amount to be deducted: Zone A: Rs. 90 per month Zone B: Rs. 80 per month Zone ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome part of the contract of service and not a contract of sale. That was the position noticed by the Andhra Pradesh High Court in [1974] 33 STC 444 (State of Andhra Pradesh v. Hotel Sri Lakshmi Bhavan). Thus, as long as there is no relationship of a seller and a buyer, but only that of a master and a servant and as an incident of relationship of master and servant, if any food is supplied and deductions are made out from the wages of the servant towards the food supplied, the same must be treated as part of wages and not a separate contract of sale of food. Indeed, the Tribunal noticed this very position In the course of its order it is stated that if wages are paid in kind the salary would have been fixed at a rate with condition as free m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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