TMI Blog1982 (1) TMI 174X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. The question as to whether a transaction of supply of meals by hoteliers to resident guests in the hotels amounted to sale was considered by their Lordships of the Supreme Court in State of H.P. v. Associated Hotels of Indi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 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. In Northern India Caterers' case [1978] 42 STC 386 (SC); AIR 1978 SC 1591 a review petition was filed and their Lordships of the Supreme Court in Northern India Caterers v. Lt. Governor of Delhi [1980] 45 STC 212 (SC); AIR 1980 SC 674, while rejecting the review petition, clarified their earlier decision in the aforesaid case by making the following observations: "........Where food is supplied in an eating-house or restaurant, and it is established upon the facts that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wner 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 food-stuffs 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 food-stuffs, and supply of food-stuffs is part of and incidental to the service, then the transaction may not amount to sale. We are, therefore, of the view that it will be for the assessing authority to ascertain the facts ..... X X X X Extracts X X X X X X X X Extracts X X X X
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