JUDGMENT

Sen, J.-The appellant, Moulin Rouge, is a company registered under the Indian Companies Act. Its business consists of running a restaurant at 20, Park Street, Calcutta-16. Apart from food and drink, it provides the customers with various services and amenities. The restaurant is air-conditioned. It provides upholstered cushioned seating, subdued lighting and also music. High class crockery and cutlery are provided. The restaurant also employs highly trained stewards who are well dressed. Personal and prompt individual attention is given to the customers. The customers cannot take away any food from the restaurant for home consumption. Even unused or unconsumed portions of food and drink are not allowed to be taken away by the customers. There is no sale of any food or foodstuff across the counter.

2. This Court in the case of State of Punjab v. Associated Hotels of India Ltd.1 held that a transaction between a hotelier and a visitor to a hotel was essentially of service. As part of the amenities incidental to that service, meals are provided in the hotel at stated hours. The Revenue was not entitled to split up the bills of the hoteliers on the ground that the bills included