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TMI Blog2009 (4) TMI 435X X X X Extracts X X X X X X X X Extracts X X X X ..... ? Held that:- If the High Court finds that to decide the above questions, foundational facts need to be established it may direct the appellant(s) to move the assessing officer by filing returns in accordance with law before adjudicating upon the constitutional question(s) on the validity of the amended section 7. Since above questions have not been answered, we set aside the impugned judgment and we remit the matter to the High Court for fresh consideration in accordance with law and accordingly civil appeals are disposed of with no order as to costs. - Civil Appeal Nos. 2935 To 2941 of 2009 - - - Dated:- 23-4-2009 - KAPADIA S.H. AND HARJIT SINGH BEDI JJ. Venkat Subramanian T.R. and Romy Chacko (M.P. Vinod, Dillep Pillai and A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er and above the tax already compounded and paid on the basis of the law as it existed on April, 2006. We quote hereinbelow section 7 of the 1963 Act, as it stood on April 1, 2006: "7. Payment of tax at compounded rates. Notwithstanding anything contained in sub-section (2) of section 5, any bar-attached hotel, not being a star hotel of and above three-star hotel, heritage hotel or club, may, at its option, instead of paying turnover tax on liquor in accordance with the provisions of the said sub-section, pay turnover tax at the rate specified under the said sub-section on the turnover of foreign liquor calculated at the following percentage of the purchase price of such liquor, namely: (a) in the case of those situated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ised on a yearly basis. So the effective date of operation of this option will be from April 1, 2006. (2) As per the amended provision under section 7 of the KGST Act, 1963, any bar-attached hotels other than star hotels of and above three-star classification heritage hotel or club are, at their option, eli- gible to pay turnover tax on the sale of foreign liquor at compounded rate calculated at the following rates, whichever is higher: (i) At 140 per cent of the purchase value of liquor, in the case of business places situated within a municipal corporation or municipal council or a cantonment and at 135 per cent in the case of business place situated at other places, or (ii) at 115 per cent of the highest turnover tax payable for an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te in the same sphere whether they obliterate the difference between normal method of taxation under section 5 and alternate method of taxation under section 7 (as amended). In this batch of civil appeals, the High Court also needs to consider the question as to whether circular No. 44 of 2006 dated November 27, 2006 issued by the Commissioner of Commercial Taxes was at all binding on the appellant(s). It is well-settled that, circulars issued by the Commissioner binds the Department and not the assessees and the answer to that question would also depend upon the answer to the above two questions. Lastly, we may state that if the High Court finds that to decide the above questions, foundational facts need to be established it may direct ..... X X X X Extracts X X X X X X X X Extracts X X X X
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