East India Hotels Ltd. And Anr vs Union Of India And Anr

The Supreme Court held that the definition of 'sale' under the Delhi Sales Tax Act, 1975, allows for the imposition of sales tax on food served in restaurants within hotels. The Court distinguished the current case from the precedent set in Northern India Caterers (India) Ltd. v. Lt. Governor of Delhi, stating that the interpretation of 'sale' under the 1975 Act differs from that under the Bengal Finance (Sales Tax) Act, 1941. Consequently, the appeal challenging the sales tax assessment was dismissed, affirming the taxability of restaurant sales in hotels.