9911796707
TMI Blog1982 (1) TMI 209X X X X Extracts X X X X X X X X Extracts X X X X ..... hey are not liable to assessment or payment of sales tax. On the other hand, it has been contended by Mr. Sumer Chand Bhandari, learned counsel appearing for the Department, that it would be a question of fact in each case as to whether the transactions entered into by the petitioners would amount to 'sale' within the meaning of Section 2 (o) of the Rajasthan Sales Tax Act, hereinafter referred to as the Act . It has been stated by the learned counsel appearing for the Department that the petitioners are making sales across the counter and are supplying eatables and drinks outside the hotels or restaurants also at the same rate and an enquiry by the assessing authority is necessary in the matter. 3. The question as to whether a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e cases a floor show. It was again emphasised in the Northern India Caterers' case (supra) that if the essence of the transaction is that of rendering service to the customers, which may include supply of food stuffs then the transaction may not amount to a sale, because the dominant object in such a transaction is not the sale or purchase of food stuffs. 5. In the Northern India Caterers' case (supra) a review petition was filed and their Lordships of the Supreme Court in Northern India Caterers v. Lt Governor, Delhi AIR 1980 SC 674, while rejecting the review petition, clarified their earlier decision in the aforesaid case by making the following observations (at p. 679):-- Where food is supplied in an eating-house or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elier or the owner of the restaurant have been separately charged. Moreover, it would also be a question of fact as to whether the customer has a right to take away the foodstuffs and in that case the assessing authority will have to decide as to whether the transaction would amount to sale or not. If the dominant object is the sale of eatables and drinks and rendering of service is merely incidental then the transaction may, amount to sale. But if, on the other hand, there is a transaction in which service is coupled with supply of foodstuffs and supply of foodstuffs is part of and incidental to the service, then the transaction may not amount to sale. 6. We are, therefore, of the view that it will be for the assessing authority to asce ..... X X X X Extracts X X X X X X X X Extracts X X X X
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