1980 (6) TMI 112

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....urnover of food and drinks supplied by it to the visitors. The turnover included similar transactions at M/s. Sweekar Hotel which is said to be a branch of the main hotel at Kolar. The respondent preferred two appeals before the Deputy Commissioner of Commercial Taxes who reduced the turnover to some extent. Aggrieved by the said orders of the appellate authority, the respondent preferred two second appeals before the Karnataka Appellate Tribunal. Before the Tribunal, the respondent placed reliance on the judgment of the Supreme Court in Northern India Caterers (India) Ltd. v. Lt. Governor of Delhi[1978] 42 S.T.C. 386 (S.C.). in which the Supreme Court had held that supply of food-stuffs in a hotel or restaurant accompanied by service does ....

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....and the first appeal; (b) Before the Tribunal, the assessee objected to the addition of entire turnover. The Tribunal relying on a decision in Northern India Caterers (India) Ltd. v. Lt. Governor of Delhi[1978] 42 S.T.C. 386 (S.C.)., held that supply of refreshments in restaurant or catering house for consumption by the visitors is part of the service and not sale, and set aside the order of the assessing authority directing to delete the disputed turnover. The question of law raised for decision of this Honourable Court: (i) Whether the Tribunal was right in holding that the supply of food and drinks by the assessee was in the nature of service and not sale? (ii) Whether the Tribunal was right in granting a relief larger than what was ....