1982 (1) TMI 209

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....es not constitute sale and as such they are not liable to assessment or payment of sales tax. On the other hand, it has been contended by Mr. Sumer Chand Bhandari, learned counsel appearing for the Department, that it would be a question of fact in each case as to whether the transactions entered into by the petitioners would amount to 'sale' within the meaning of Section 2 (o) of the Rajasthan Sales Tax Act, hereinafter referred to as "the Act". It has been stated by the learned counsel appearing for the Department that the petitioners are making sales across the counter and are supplying eatables and drinks outside the hotels or restaurants also at the same rate and an enquiry by the assessing authority is necessary in t....

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.... area for floor dancing and in some cases a floor show. It was again emphasised in the Northern India Caterers' case (supra) that if the essence of the transaction is that of rendering service to the customers, which may include supply of food stuffs then the transaction may not amount to a sale, because the dominant object in such a transaction is not the sale or purchase of food stuffs. 5. In the Northern India Caterers' case (supra) a review petition was filed and their Lordships of the Supreme Court in Northern India Caterers v. Lt Governor, Delhi AIR 1980 SC 674, while rejecting the review petition, clarified their earlier decision in the aforesaid case by making the following observations (at p. 679):-- "Where food is s....