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TMI Blog2018 (3) TMI 1412X X X X Extracts X X X X X X X X Extracts X X X X ..... ffected directly to Unit-run canteens of the Military, Navy, Air force etc., the State Government decided to depart from the earlier practice of granting concessional rate of tax even in respect of supplies effected to Unit-run canteens and confined the benefit of concessional rate of tax only to supplies effected to the Canteen Stores Department. The amendment, however, was to take effect only from the assessment year 2014-15, and for the prior period, it was felt not necessary to interfere with the benefit of concessional rate of tax, that was already extended to unit run canteens. The assessing Authority has not taken note of this amendment, which came into effect only from the assessment year 2014-15, and appears to have applied the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs, in respect of the supplies effected by them, of their products, to canteens run by units of the Military, Navy and Air force. It is the stand of the petitioners in the writ petition that, as per the statutory provisions, the benefit of concessional rate of tax is applicable, not only in respect of supplies effected to the Canteens Stores Department, but also in respect of supplies effected to the Unit run canteens of the Military, Navy and Air Force. In the assessment orders that are impugned in these writ petitions, the claim for concessional rate of tax was denied on the ground that the concessional rate of tax would be applicable only to supplies effected directly to the Canteen Stores Department or to supplies by Unit run canteens, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ided also that, where- (a) the sale is to or by Military, Naval, Air Force or National Cadet Corps Canteen, Indian Naval Canteen Service [Canteen Stores Department, Central Police Canteen and one subsidiary canteen each that may be established by the Kerala Police in each District of the State and affiliated to the Central Police Canteen. For the assessment years 2014-15 and 2015-16, the said provision was amended, to read as follows: Section 6 (1) Every dealer whose total turnover for a year is [not less than ten lakhs] rupees and every importer or casual trader or agent of a non-resident dealer, [or dealer in jewellery of gold, silver and platinum group metals or silver articles or contractor or any State Government, Central ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4, and the benefit of concessional rate of tax was confined only to sales effected to Canteen Stores Department, Central Police canteen, Indian Naval Canteen Service and National Cadet Corps Canteen. The amendment appears to have been the result of a realisation by the State Government, of the difference in the functioning of Canteen Stores Department and the Unit run Canteens. The distinction between the Canteen Stores Department and unit-run canteens was taken note of by the Supreme Court in the decision reported in Union of India and Others v. M.Aslam And Others [(2001) 1 SCC 720] , although in the context of examining the service conditions of personnel appointed under the Unit-run canteens, where the Supreme Court observed as follows: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ver, was reverted to the contractors. But by the early fifties it was realised that the margin of profit between the wholesale price and the retail rate could be a welcome source of funds available to the commanding officers for welfare purposes. Thus, the concept of Unit-run Canteens was born, and contractors were driven out. When Major Gen. K.S. Thimmaya took over as Quarter Master General, he gave detailed thought to providing canteen facilities to the troops at the unit level. He found that retail outlets being in the hands of the unit canteen contractors, the margin between the wholesale price and retail price of goods went to the contractors whereas the amount in the hands of individual commanding officers of units in the army, navy a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ected to the Canteen Stores Department. The amendment, however, was to take effect only from the assessment year 2014-15, and for the prior period, it was felt not necessary to interfere with the benefit of concessional rate of tax, that was already extended to unit run canteens. 7. In the impugned assessment orders, I find that, the assessing Authority has not taken note of this amendment, which came into effect only from the assessment year 2014-15, and appears to have applied the rationale of the amended provision to even the earlier assessment years up to, but not inclusive of the assessment year 2014-15. I am, therefore of the view that, the assessment orders impugned in all these writ petitions, except W.P.(C).No.17209/2017, inasmu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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