JUDGMENT

R. S. PATHAK, J.:— This and connected appeal are directed against the judgment of the High Court of Delhi disposing of a reference made to it under S. 21 (3) of the Bengal Finance (Sales Tax), Act, 1941 as extended to the Union Territory of Delhi on the following question:-

"Whether the service of meals to casual visitors in the Restaurant is taxable as a sale

(i) when the charges are lump sum per meal or

(ii) when they are calculated per dish? The High Court has answered the question in the affirmative.

2. The appellant runs a hotel in which lodging and meals are provided on "inclusive terms" to residents. Meals are served to non-residents also in the restaurant located in the hotel. In the assessment proceedings for the assessment years 1957-58 and 1958-59 under the Bengal Finance (Sales Tax) Act, 1941, the appellant contended that the service of meals to residents and non-residents could not be regarded as a sale and therefore sales tax could not be levied in respect thereof. The contention was rejected by the sales tax authorities, who treated a portion of the receipts from the residents and non-respondents as representing the price of the foodstuffs served. At the instanc