Sales tax exemption for counter sales of cooked food and drinks extends to carry-away consumption under the Bombay Act.

Counter sales of cooked food and non-alcoholic drinks intended for consumption outside a hotel fall within Entry No. 14 of Schedule A to the Bombay Sales Tax Act, 1959 and are exempt from sales tax. The entry applies where such items are served at one time for consumption "at or outside" an eating house, restaurant, hotel, refreshment room or boarding establishment; the phrase qualifies consumption, not the place of service. Legislative history shows the 1959 Act deliberately broadened the earlier exemption to cover carry-away sales, reflecting a purpose to assist ordinary customers and reduce administrative difficulty. On that construction, the exemption covers the sales described.

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Issues: Whether counter sales of cooked food and non-alcoholic drinks at a hotel, intended for consumption outside the premises, fall within Entry No. 14 of Schedule A to the Bombay Sales Tax Act, 1959 and are therefore exempt from sales tax.

Analysis: Entry No. 14 exempts cooked food and non-alcoholic drinks served at one time at a price not exceeding one rupee per person for consumption at or outside an eating house, restaurant, hotel, refreshment room or boarding establishment. The wording places the phrase "at or outside" after "consumption" and not after "served", showing that the statutory condition is not that service must be at the place of consumption. The legislative history of the earlier Bombay enactments showed that the former exemption turned on consumption at the place where food was served, whereas the 1959 Act deliberately departed from that language to extend the exemption even where food is carried away. The broad purpose of the entry was to benefit ordinary customers of limited means and to avoid the administrative difficulty caused by the earlier restriction.

Conclusion: Counter sales of the kind involved are covered by Entry No. 14 of Schedule A and are exempt from sales tax.

Ratio Decidendi: Where an exemption entry expressly extends to food served for consumption "at or outside" the specified establishment, the word "served" cannot be confined to table service or to consumption at the place of service; the exemption must be given effect according to its plain language and legislative purpose.

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