Meal pricing for boarding-house supplies upheld on average cost basis where no reliable contrary records were produced.

Meal charges supplied to boarders in a boarding house were assessed by averaging the total period charges over the actual number of meals furnished, rather than by dividing monthly or fortnightly boarding fees across all days. Because the assessee produced no reliable records to show a different pricing basis, such as higher holiday rates or coupon-account evidence of actual sales, the authorities' method was treated as rational. On that footing, the meal price exceeded the taxable threshold and the charges were included in taxable turnover. The assessment was upheld and the challenge failed.

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Issues: Whether the price of meals supplied to boarders in a boarding house was to be computed so as to bring each meal above the taxable threshold and include the charges in taxable turnover.

Analysis: The applicants sought to divide the monthly or fortnightly boarding charges by the number of days to contend that each meal cost less than Re. 1. The authorities instead treated Sundays and public holidays as days on which fewer meals were supplied, and on that basis the average cost per meal exceeded Re. 1. The applicants did not produce records or other reliable material to show that holiday meals were charged at double the ordinary rate for boarders, nor did they maintain coupon-account records showing the actual number of books printed or sold. In the absence of such proof, the rational method was to divide the total amount for the relevant period by the number of meals actually supplied.

Conclusion: The assessment method adopted by the authorities was upheld and the challenge to inclusion of the meal charges in taxable turnover failed.

Final Conclusion: The application was rejected, and the assessment stood undisturbed.

Ratio Decidendi: Where the assessee fails to prove an alternative basis for pricing supplied meals, the taxable value may be determined by averaging the total charges over the actual number of meals furnished.

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