R.S.Narula, J.

1. The main question of law which calls for decision in this case is whether the approximate cost of food included in the consolidated charge made by a hotelier from a resident client during his stay in the hotel is liable to tax under the Punjab General Sales Tax Act, 46 of 1948 or not. I will refer to the said Act in this judgment as the Punjab Act. In other words the question is whether hoteliers who make one consolidated charge from their clients for providing them with residential accommodation, services, linen, food, etc. and who do not allow any rebate if food is not taken or served transfer the food to their customers for consideration so as to attract the provisions of S. 2 (h) of the Punjab Act or not.

2. Messrs Associated Hotels of India Ltd., petitioners in this case are such hoteliers. They have been duly registered since March 30, 1949 as dealers under the Punjab Act. The business carried on by the petitioners consists of two branches. The first is the hoteliers business proper. The second is their restaurant business. As hoteliers, the petitioners are receiving guests in their hotel where they provide them with comfortable lodging and various o