1987 (4) TMI 463 - HC - VAT and Sales Tax

Summary

Issues:
Challenge to assessment orders for various years based on sales tax liability for food sold in a restaurant.

Analysis:
The petitioner challenged assessment orders for different years, arguing that no sales tax was payable for food sold and consumed in the restaurant. The petitioner relied on a Supreme Court decision and a Division Bench judgment of the Court, emphasizing that unless the dominant purpose of the restaurant was the sale of food, no sales tax was applicable. The petitioner also highlighted the Constitution (Forty-sixth Amendment) Act, 1982, specifically Article 366(29A)(f), which addressed taxes on the supply of goods like food for consideration. The Act validated the imposition of taxes on goods but provided exemptions under certain conditions.

The Court noted that the Bihar Finance Act, 1981 was amended in 1984 to align with the Constitution (Forty-sixth Amendment) Act. The relevant amendment in section 60A mirrored the provisions of the Constitution Act, providing statutory backing to taxes previously deemed illegal due to court decisions. Consequently, the Court allowed the writ application, quashing the assessment orders. No costs were awarded in the judgment.