1970 (3) TMI 120

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nces of the case, the supply of food by the company to its residents constitutes a sale of goods within the meaning of the Orissa Sales Tax Act and as such liable to be assessed under the said Act." 2.. The facts on the basis of which the aforesaid two questions have been framed, as referred to in the reference order, are not disputed before us. The Oberoi Palm Beach Hotel at Gopalpur in the district of Ganjam is a registered dealer under the Orissa Sales Tax Act. it carries on the business of hotel-keeping. A composite charge for lodging and boarding is made from each boarder at Rs. 25 to Rs. 30 for a single room and Rs. 45 to Rs. 50 for a double room per day. This charge includes service of providing with residential accommodation, foo....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....t does not include a mortgage, hypothecation, charge or pledge and the words "buy" and "purchase" shall be construed accordingly. Thus, in order to constitute "sale" there must be transfer of property in goods which would always constitute movable property. The impugned agreement of the boarders with the hotelier, the terms of which have already been indicated, would show that there was no separate agreement for sale of food. Supply of food constituted an integral part of the agreement whereunder many other necessary services were also supplied. The value of food was not separately indicated in the agreement. The customer was not entitled to any rebate or reimbursement for non-user of the food at any time. He had not the right to transfe....