9911796707
TMI Blog1975 (8) TMI 71X X X X Extracts X X X X X X X X Extracts X X X X ..... es" and credited to that account, will form part of 'turnover' and is exigible to sales-tax. 2. The appellants are a private limited concern running a western type hotel with lodging facilities. Besides, they have a Restaurant attached to the hotel called "Golden Bowl Restaurent" where Cabaret Dances, Band Play, Ventriloquism an the like are entertained every day between 9.30 p.m. to 11.30 p.m and also a bar. They are supplying both western style tiffin and meals and Indian vegetarian and non-vegetarian dishes. 3. For the asst. yr. 1972-73, they declared a total and taxable turnover of Rs. 13,28,357.60 under the Act. The assessing authority who checked the accounts found certain exemptions claimed to be not admissible. He therefore determ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . to 11.30 p.m. During that time the entrants are charged Rs. 5,00 as 'cover charges' i.e., entrance fee per head and every entrant should also pay a minimum fare towards dining expenses of Rs. 10. It is stated that this restriction is not there then the sales of food would definitely be less as some will enter by paying Rs. 5 as entrance fee and leave the place after the Cabarat show is over. Thus, the appellants charge the customer with Rs. 10 as Minimum Dinner Charges whether the latter consumes food stuff worth Rs. 10 or not and if they consume worth more than Rs. 10 the appellants collect the full amount from them. It is submitted that the actual fare of the food stuff consumed is credited to Restaurent Sales Account and the difference ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... charges is not the value of the goods consumed. It is a separate charge levied by the appellant on their customers to prevent all and sundry over staying in the restaurant during the Cabaret time. He has gone to the extent of contending that it is even possible, according to him, to argue that the entire minimum dining charges is not taxable as the food supplied in the evert of its value not exceeding Rs. 10 is supplied free But actually the claim is restricted to the difference between the value of the food stuff consumed and the minimum dinner charges collected. 7. The appellant-hotel collects by way of 'cover charges' Rs. 5 each from those who enter Golden Bowl Restaurent between 9.30 p.m. to 11.30 p.m. The primary intention of running ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... od stuffs. We find that there is no option left to the customer otherwise than to pay the minimum dining charges if he consumes for a lesser amount than Rs. 10 and entertainment, if any, is to be taken as incidental. The contract between the customer and the appellant is that the latter should pay 'cover charges' of Rs. 5 and a minimum dining charge of Rs. 10 per head. If, in case, he consumes more than the minimum no doubt, the actual fare is charged for and paid by the customer. When the customer agrees to pay what is known as the minimum dining charge of Rs. 10 by way of consuming food stuff in the Restaurant at any one time without his being given any option to pay the actual cost of the food stuff consumed, if it is less than the minim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or distributed by a dealer for cash or other valuable consideration. Therefore, only the consideration or sale price or value of goods agreed to be transferred is criterion and not the intrinsic value of the goods sold, bought, supplied or distributed. Whether the customer consumes loss or more, the agreed sale value of the goods in the instant case is the consideration for the purpose of assessment. As per the contract, the contract price is the minimum of Rs. 10 to be paid by the customer whether he takes more or less quantity within Rs. 10. If one enters the restaurant he should pay the minimum fare of Rs. 15 inclusive of cover charges. In that, the customer has no option. According to the contractual obligation, he has to pay the minimu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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