1997 (6) TMI 353 - HC - VAT and Sales Tax

Summary

Issues:
Interpretation of section 17(4) of the Karnataka Sales Tax Act, 1957 regarding composition scheme for hoteliers and restaurateurs with total turnover exceeding Rs. 2,50,000 for the financial year 1983-84.

Analysis:

1. The revision petitioner, a hotelier, challenged an order by the Tribunal regarding the composition scheme under section 17(4) of the Karnataka Sales Tax Act, 1957 for the financial year 1983-84. Despite declaring a total taxable turnover of Rs. 5,00,191, the assessment determined it at Rs. 6,13,900. The assessing authority granted composition benefits, but the Deputy Commissioner set aside the order stating that no composition was available for hoteliers with turnover above Rs. 2,50,000. The Tribunal upheld this decision, leading to the revision petition before the High Court.

2. Section 17(4) of the Act provides for the composition of tax for hoteliers and restaurateurs. The key issue was whether the revised provision, effective from November 18, 1983, could be applied to the petitioner's case for the year 1983-84. Sub-section (8-A) of section 43 clarified that the amended provisions of section 17(4) would not apply to years commencing before the amendment but the previous provisions would apply. The Court noted that the petitioner's year commenced prior to the amendment, disentitling them from the benefits of the revised composition scheme.

3. The Court emphasized that the non-obstante clause in sub-section (8-A) of section 43 gave it an overriding effect, ensuring that inconsistencies with other provisions would not affect its application. Since the petitioner's year began before the amendment increasing the turnover limit to Rs. 7,50,000, they were not eligible for the revised composition scheme. Consequently, the Tribunal's decision to reject the petitioner's claim for composition benefits under section 17(4) for the year 1983-84 was upheld, and the revision petition was dismissed.