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TMI Blog1975 (12) TMI 146X X X X Extracts X X X X X X X X Extracts X X X X ..... he case, the Member, Additional Sales Tax Tribunal, was right in excluding the turnover of foreign liquor business from the turnover of the dealer?" 2.. The assessee is a partnership business of a hotel run in the name and style of Hotel Rajmahal at Bhubaneswar. It has three partners, namely, Sudhir, Sunil and Ashok, and the firm is a registered dealer under the Act. As shown in the statement of facts, the hotel serves meals, tea, tiffin and drinks. Foreign liquor is also sold open and served within the hotel premises to customers. As it appears one licence for foreign liquor has been issued in the name of a single partner. The periods with which these applications are concerned are 1964-65, 1965-66 and 1966-67. Assessment for the last ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otel, the Sales Tax Officer had further found that one common account was maintained and the profit and loss statement of the business covered the turnover of the hotel as also of the liquor business. According to the Sales Tax Officer, nothing turned on the feature that the licensee was one partner. In fact, under the Excise law, a partnership firm cannot be a licensee. It has already been indicated by the Supreme Court that where a licence is granted to one partner and he admits others into the business, there is no illegality committed and public policy is in no way affected. This appears to have been done in the case. The reasoning given by the Tribunal to disturb the finding of both the forums below in regard to unity or separation of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ceed Rs. 36,000; (c) 50 per cent, if the annual turnover of sales exceeds Rs. 36,000, but does not exceed Rs. 72,000; (d) 60 per cent, if the annual turnover of sales exceeds Rs. 72,000. (2) ............." An analysis of this rule shows that the business of a hotel, the business of a refreshment stall or the business of any other establishment, once the business is of the type mentioned, shall be assessed under the special mode. According to the learned standing counsel, drinks in sub-rule (1) cover sale of liquor as well. Assessee's counsel contends that sale of foreign liquor being a tax-free item could not have been contemplated to be covered by the general term of "drinks". Section 6 of the Act empowers the State Government by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of liquor is not taxable, it cannot be made taxable by this process. 6.. "Drinks" as such cannot cover liquor, even where drink is used as-a substitute of liquor. Our answer to the second question, therefore, shall be: On the facts and in the circumstances of the case, the Tribunal was right in excluding the turnover of foreign liquor business from the turnover of the dealer, though the reason for our conclusion is very different from what had been ascribed by the Tribunal. It would follow that the assessee has to be assessed only on the turnover of the hotel business (excluding the turnover of sale of liquor) in terms of rule 90(1) of the Orissa Sales Tax Rules. The assessee shall have his costs. Consolidated hearing fee is assess ..... X X X X Extracts X X X X X X X X Extracts X X X X
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