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TMI Blog2010 (11) TMI 897X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 17(4) of the Act and other portion to a tax at the rate of 10 per cent. under section 6 of the Act. So far as the total turnover tax of this revision petitioner is concerned, we again have to see what is the total turnover of this dealer. So far as the case of the present petitioner, it attracts sub-clause (b) of clause (1) of rule 6 of the KST Rules and the total amount paid or payable to the dealer as the consideration for the sale, supply or distribution of any goods other than those coming under clause (a) where such sale, supply or distribution has taken place inside the State would be the total turnover and the authorities ought to have taken such total amounts as the turnover upon which the composition of tax as contemplate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... authority in KSTAP No. 113/2004-05. However the appellate authority dismissed the appeals upholding the orders of the assessment. Aggrieved by the same, the petitioner herein filed S.T.A.No. 2576 of 2004 challenging the orders of the first appellate authority and the second respondent on the ground that inspite of number of books of account before the assessing authority, though there was no scope for estimation of turnover, the assessing authority arbitrarily bifurcated the total turnover into two parts one for taxation purpose giving benefit of composition of tax under sub-section (4) of section 17 of the Act and the other one under sub-clause (a) of clause (3) of section 5 of the Act. According to the appellant, the banquet hall re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eur, as per the demand of the guest of the hotel or the restaurant, food is supplied and so far as catering, it is not as per the demand of the people who eat the food in the banquet hall, but it is the same food supplied to all the members, who eat in the said hall. Therefore, there is a difference between food supplied in the restaurant and the food supplied in the banquet hall. Therefore the banquet receipts cannot have the benefit of composition of tax as contemplated under section 17(4) of the Act. Sub-section (4) of section 17 of the Act reads as under when the assessment in question for the 2001-02 came to be considered by the assessment officer: 17. (4)(i) Notwithstanding anything contained in sub-sections (1) to (3), but subjec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch statements or returns in such manner as may be prescribed. (iii) The amount paid under clause (ii) shall be subject to such adjustment as may be necessary on the completion of final assessment. The benefit of composition of tax at that time was applicable to a dealer being a woman catering food and drinks. The benefit was not extended to any caterer other than a woman caterer. By relying upon the said provision available at the relevant point of time, the learned Government Advocate contends that as the benefit was applicable only to a woman caterer who was supplying food and drinks, such benefit was not available to the present petitioner, therefore the petition deserves to be dismissed. By reading sub-section (4) of section 17 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are entitled for the benefit for the claim of composition of tax. The registration certificate in form No. 1 of the Act given to the petitioner herein refers to place of business and nature of business as well. The nature of business is boarding and restaurant. We are concerned with the banquet receipts where group of persons were not only supplied with food but accommodation was also provided. There was no separate charge for the said group of persons for providing the said hall and they were only charging for the food that was supplied to them. Similarly as a hotelier, he cannot charge separate charges for the place occupied by the guests to eat the food because for the accommodation provided, he would be paying separately. Similarly in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d drinks. When we look to the facts of the present case, we have to see the main business activity of the petitioner or the dealer, i.e., the hotel and the restaurant business of the petitioner. Therefore, the hotel and the restaurant business of the petitioner will not be changed by mere fact it also provides to its guests in the banquet hall. Therefore, the authorities were wrong in bifurcating the receipts of the petitioner and categorising them for a portion under section 17(4) of the Act and other portion to a tax at the rate of 10 per cent. under section 6 of the Act. So far as the total turnover tax of this revision petitioner is concerned, we again have to see what is the total turnover of this dealer. So far as the case of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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