9911796707
TMI Blog1990 (8) TMI 358X X X X Extracts X X X X X X X X Extracts X X X X ..... estaurant" at Nagpur where food-stuff and drinks are served. For the period from April 1, 1971 to March 31, 1972 the applicant was assessed for sales tax on the turnover of sales of these articles in the restaurant. One of the contentions raised by the applicant was that it was charging a minimum floor charge of Rs. 10 per person for the cabaret show in the night time and these charges should be treated as entertainment charges and should be deducted from the total turnover. On consideration of various factual aspects, the said deduction was not allowed. The tax assessed was Rs. 5,353.53. The applicant preferred first appeal before the Assistant Commissioner of Sales Tax, but without any success. It also preferred a second appeal before the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oods' includes- (a)-(e) ........................ (f) a tax on the supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink (whether or not intoxicating), where such supply or service is for cash, deferred payment or other valuable consideration, and such transfer, delivery or supply of any goods shall be deemed to be a sale of those goods by the person making the transfer, delivery or supply and a purchase of those goods by the person to whom such transfer, delivery or supply is made." By section 6, which is a provision relating to validation and exemption, retrospective effect is given to the above constitutional amendment. Thus one o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctive effect in certain matters. 5.. Learned counsel for the applicant strongly relying on the ratio of the decision of the Madras High Court in Sree Annapoorna v. State of Tamil Nadu [1986] 63 STC 18 has contended that since the above deeming definition of the term "sale" refers only to the period after February 2, 1983, it cannot validate levy in the instant case which is for the earlier period. We are unable to accept the above submission. The constitutional amendment enlarged the scope of entry 54 in List II and conferred in the matter legislative competence to the State Legislature which was found absent by the Supreme Court. The net result is that the State Legislatures were authorised to make laws imposing such levy and collection ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this reference. What is material is that the concept of levy of sales tax on cooked food and drinks served for consumption at the restaurant already existed in the Act at the material time and before February 2, 1983, when the constitutional amendment was made. 7.. We may mention that even under the Bombay Sales Tax Act, 1946, there existed a concept of levy of sales tax on food served and supplied in hotel or restaurant and this has been judicially noticed and interpreted by this Court in the case of Commissioner of Sales Tax v. Lala Lajpatrai Hotel [1975] 35 STC 368. 8.. Close examination of the case of Sree Annapoorna v. State of Tamil Nadu [1986] 63 STC 18 (Mad.) would reveal that its ratio will have no application in the instant c ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
