1981 (1) TMI 221 - SC - VAT and Sales Tax

Supreme Court overturns Tribunal's classification, remands case for fresh assessment.

The Supreme Court allowed the appeals, overturning the Karnataka High Court's dismissal of revision petitions. The Tribunal's classification of providing ... Whether assessee runs a hotel wherein food and drinks are served to the visitors? Held that:- Appeal allowed. The only finding recorded in this case that the assessee runs a hotel wherein food and drinks are served to the visitors is not sufficient. Thus set aside the impugned order and send the case back to the Sales Tax Officer concerned for a fresh assessment according to law following the guidelines appearing in the judgment of this Court disposing of the review petition in the Northern India Caterers' case [1978 (12) TMI 157 - SUPREME COURT OF INDIA]. The Supreme Court allowed the appeals arising from two revision petitions dismissed by the Karnataka High Court. The Tribunal's decision that providing refreshments in hotels was a social service, not a sale, was deemed insufficient. The case was sent back for a fresh assessment following guidelines from a previous judgment.