Implied sale of bar snacks and soda water justified excluding their value from liquor turnover.

Snacks and soda water served with liquor in a hotel bar were treated as supplies made for consideration under an implied agreement, not as free items. The court accepted that customers ordering liquor would understand that such accompaniments were part of the transaction and payable, even if not separately charged in the bill. A separate internal accounting chit also showed that the value of the snacks and soda water could be identified and segregated from liquor turnover. Their value was therefore deductible from the liquor sales turnover, and the issue was answered in favour of the dealer.

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Issues: Whether snacks and soda water supplied along with liquor in a hotel bar were supplied gratis or were sold for consideration under an implied agreement with the customers, and whether their value could be deducted from the taxable turnover of liquor sales.

Analysis: The respondent ran a hotel bar for profit, and the surrounding circumstances showed that customers ordering liquor knew that snacks and soda water were served with it and would have to be paid for. The absence of a separate charge in the bills did not justify an inference that the items were free. The existence of a separate internal accounting chit further supported the view that the value of snacks and soda water could be ascertained and separated from the liquor turnover. The factual inference drawn by the Tribunal that customers agreed impliedly to purchase these items along with liquor was justified.

Conclusion: The snacks and soda water were not supplied gratis, but were sold under an implied agreement for consideration. Their value was liable to be separated from the liquor turnover, and the question was answered in favour of the respondent-dealer.

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