Pre-1983 canteen sales were exempt where tax was not collected, despite the general liability under the Forty-sixth Amendment.

Sales and supply of food, snacks and beverages by canteens, restaurants and similar establishments for the period before 2 February 1983 were protected by section 6(2) of the Constitution (Forty-sixth Amendment) Act, 1982 where tax had not been collected from customers. That exemption operated notwithstanding the general liability under section 6(1), so pre-amendment transactions had to be assessed in light of the non-collection condition and were not taxable to the extent covered by section 6(2).

---

---

Issues: Whether sales and services rendered by a canteen prior to 2 February 1983 were taxable in the light of section 6(2) of the Constitution (Forty-sixth Amendment) Act, 1982, and the effect of non-collection of tax from customers.

Analysis: The period in dispute was before the Forty-sixth Amendment to the Constitution came into force on 2 February 1983. For such pre-amendment transactions involving supply of food, snacks and beverages by restaurants, canteens and similar establishments, section 6(2) granted exemption where tax had not been collected during the specified period, notwithstanding the general liability arising under section 6(1). The Tribunal's view was therefore required to be read in that light, and the tax liability had to be determined accordingly.

Conclusion: The pre-2 February 1983 transactions were not liable to tax to the extent protected by section 6(2) of the Constitution (Forty-sixth Amendment) Act, 1982, and the assessee succeeded.

Ratio Decidendi: Transactions by canteens, restaurants and similar establishments for the period before 2 February 1983 were exempt from tax under section 6(2) of the Constitution (Forty-sixth Amendment) Act, 1982 where tax had not been collected, notwithstanding the general liability created by the amendment.

---