Mutuality and agency in club supplies of food and drinks required factual determination before sales tax liability could be decided

Sales tax liability on club supplies of food and drinks depended on unresolved facts about whether the club acted only as agent of its members or whether property passed to members. Because the record lacked a finding on that decisive factual foundation, the matter was remitted to the Tribunal for fresh decision in accordance with law. All contentions on mutuality and agency were left open, and the Tribunal was directed to decide the pending appeal without being influenced by the set-aside High Court judgment.

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Issues: Whether the matter should be remitted to the Tribunal for a factual determination on the relationship between the club and its members in the supply of food and drinks, and consequentially on the applicability of sales tax.

Analysis: The existing record did not contain a finding by the fact-finding authorities on the crucial question whether the club acted merely as an agent of its members or whether property in the food and drinks passed from the club to the members. As the assessment dispute was still pending before the Tribunal, and the parties' contentions on mutuality and agency required adjudication on facts, the matter was sent back for decision in accordance with law. All contentions were kept open, and the Tribunal was directed to decide the appeal without being influenced by the impugned High Court judgment.

Conclusion: The matter was remitted to the Tribunal for fresh decision on the pending appeal, with no expression of opinion on the merits.

Final Conclusion: The civil appeal succeeded only to the extent that the impugned judgment was set aside and the dispute was returned to the Tribunal for determination on the unresolved factual and legal questions.

Ratio Decidendi: Where the decisive factual foundation for tax liability is absent, the proper course is remand for adjudication of the factual issue before deciding exigibility.

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