THE EAST INDIA HOTELS LTD. vs UNION OF INDIA

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, asserting that the provisions of the 1975 Act permit taxation of such sales. Consequently, the appeal was dismissed, affirming the assessment order of the Sales Tax Officer.