STATE OF KARNATAKA Vs. UDIPIKRISHNA BHAVAN

JUDGEMENT

(1.) These two appeals arise out of two revision petitions dismissed by the Karnataka High Court which were preferred by the State of Karnataka under S. 8-A of the Karnataka Appliance Tribunal (Amendment) Act, 1976 read with S. 23 of the Karnataka Sales Tax Act, 1957. The revision petitions were directed against a common order of the Karnataka Appellate Tribunal by which the Tribunal allowed two appeals preferred by the assessee relating to the assessment for the years ended March 31, 1976 and March 31, 1977 respectively. Following the decision of this Court in Northern India Caterers (India) Ltd. v. Lt. Governor of Delhi, (1979) 1 SCR 557: (AIR 1978 SC 1591) the Tribunal had held that the supply of refreshments to the visitors of the two hotels owned by the respondent before us was "part of a social service and not a sale". The High Court taking the same view dismissed the revision petitions. The finding of the Appellate Tribunal, as summarised by the High Court, on which its decision rests is:

(2.) We set aside the impugned order and send the case back to the Sales Tax officer concerned for a fresh assessment according to law following the guidelines appearing in the judgment of this court disposing of the review petition in the Northern India Caterers' case. There will be no order as to costs.