9911796707
TMI Blog2001 (2) TMI 994X X X X Extracts X X X X X X X X Extracts X X X X ..... 1-92 the question that arises for consideration is whether the cooked food made in the hotel is liable for exemption under entry 57 of the First Schedule to the Kerala General Sales Tax Act, 1963. According to entry 57 of the First Schedule, cooked food including beverages not falling under entry 76A of the Schedule sold or served in hotels and/or restaurants the turnover in respect of which is Rs. 20 lakhs and above is liable to be taxed at the point of first sale in the State by a dealer who is liable to tax under section 5. According to the assessee, the turnover that should be taken for the purpose of entry 57 is only the turnover in respect of cooked food and beverages. The other items sold in the hotels cannot be taken into considerat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y lakhs rupees and above". The authorities have interpreted the turnover as the turnover of the hotel while the assessee will argue that it is the turnover of the cooked food. 5.. An identical question came up for consideration in the Madras High Court in the decision reported in State of Tamil Nadu v. Arasan Ice Creams and Sweets Restaurant [1996] 100 STC 333. There, a notification issued by the Madras Government in exercise of the powers conferred under the Madras General Sales Tax Act came up for consideration. There the provision that came up for consideration before that court was as follows: "Provided that the exemption in respect of bakery products shall not apply to a dealer whose total turnover in a year exceeds rupees two la ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aurants and when it is sold in bar attached hotels and restaurants. So far as bar attached hotels and restaurants are concerned, cooked food is liable to be taxed, whatever may be the turnover. But so far as the other hotels are concerned, the entry says that it is liable to be taxed, if the turnover is more than Rs. 20 lakhs. A hotel or restaurant may sell many items other than cooked food. When we speak of turnover, we mean the turnover of the particular goods or commodity. It does not refer to the turnover of the shop or establishment. Further, according to us, what the Legislature had the intention was with regard to the turnover of cooked food and not the turnover at the place from where it was sold. 6.. Hence, we are of the view tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
