TaxTMI 
TaxTMI 
1994 (12) TMI 311
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....submitted on behalf of the Petitioner that it is by way of wages that food was supplied customarily and in such cases the notification issued under the Minimum Wages Act, 1948, on February 14, 1986, made it clear that where food is supplied to workmen certain sums could be deducted from their wages depending upon the category in which they come. It is therefore contended on behalf of the petitioner that the sums deducted from the wages for supply of food is part of wages and not consideration for sale of food. But, it is the stand of the department that the said amount is in the nature of consideration for supply of food. The assessing authority took the view that though the assessee has referred to minimum charges deductible, the....
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.... the proposition that the petitioner had given their workmen wages in kind and if they were to be wages in kind then the salary would have been fixed with a condition of free meals, whereas that is not so. The conditions of employment clearly specify that in the event of worker choosing to take food he would be liable to pay feeding charges at specified rate. This amounts to supply of food at a fixed rate throughout the month and deferring recovery till the payment of wages. In their view there is no difference between an outright sale and sale of food and drinks to a worker and the only difference, if any, would be that a regular bill is issued in respect of sale to a customer, whereas an adjustment of book entry is passed in respect of....
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....able of being expressed in terms of money, which would, if the terms of the contract of employment, express or implied, were fulfilled, be payable to a person employed in respect of his employment or of work done in such employment and includes house rent allowance, but does not include: (i) the value of: (a) any house-accommodation, supply of light, water, medical attendance, or, (b) any other amenity or any service excluded by general or special order of the appropriate Government; (ii) to (v)...................................." 6.. The Karnataka Government has issued a notification under the Act, whereby it is provided as follows: "Where food is supplied to workmen, the following sums are to be deducted from the wages ....
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....cident of contract of service, either wages or any other amenities such as providing food or lodge. In such an event it would become part of the contract of service and not a contract of sale. That was the position noticed by the Andhra Pradesh High Court in [1974] 33 STC 444 (State of Andhra Pradesh v. Hotel Sri Lakshmi Bhavan). Thus, as long as there is no relationship of a seller and a buyer, but only that of a master and a servant and as an incident of relationship of master and servant, if any food is supplied and deductions are made out from the wages of the servant towards the food supplied, the same must be treated as part of wages and not a separate contract of sale of food. Indeed, the Tribunal noticed this very position In the co....