Appeal of John H.

The issue in this case is whether the statutory and regulatory law relating to meals and rooms taxes requires the plaintiffs to pay an assessment for taxes not collected on the sale of pre-packaged, take-out sandwiches.

In 1972 the plaintiffs, John and Milena Denman, opened Cheese, Etc. in Hanover. In the beginning they sold mostly take-out foods. Offerings included cheeses, cold meats, whole breads, cakes, pies and pre-packaged sandwiches. Seating consisted of only one table and two benches.

It appears that shortly after the business opened it was inspected by a meals and rooms tax examiner…