Sales tax exemption for small food vendors construed narrowly; a large bhojanalaya with ancillary sales fell outside the notification.

An exemption notification for cooked food sold by specified small-scale vendors was construed in its ordinary sense because the expressions used were undefined. The Madhya Pradesh High Court noted that the assessee's bhojanalaya was a large establishment with waiters and substantial sales of sweets and namkeen, and therefore was not comparable to the small operators covered by the notification. On the facts found, the turnover did not qualify for sales tax exemption, and the interpretation adopted by the sales tax authorities and the Tribunal was upheld as correct.

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Issues: Whether the assessee's turnover from the bhojanalaya was exempt from sales tax under Notification No. 965-V-ST dated 31st March, 1964, and whether the notification covered only small operators who themselves or with a few personal servants prepared and served fresh food.

Analysis: The notification exempted cooked food when prepared and sold by specified classes of small-scale food vendors. The expressions used in the notification were not defined and were therefore to be understood in their ordinary sense. On the facts found, the assessee ran a large establishment with waiters, sold sweets and namkeen in substantial quantities, and was not comparable to the small operators contemplated by the notification. The findings of the assessing authority and the Tribunal were based on material on record and raised no question warranting interference in reference jurisdiction.

Conclusion: The assessee's turnover was not exempt from sales tax, and the interpretation adopted by the sales tax authorities and the Tribunal was correct, in favour of Revenue.

Ratio Decidendi: An exemption notification for specified classes of small food vendors is to be construed according to the ordinary meaning of its terms, and a large hotel-like establishment carrying on substantial ancillary sales does not fall within such exempted categories.

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