Purchase-turnover exemption under Kerala sales tax notification does not cover bar attached hotels selling liquor

S.R.O. No. 363/92 granted purchase-turnover exemption only to persons and goods specifically covered by its terms. Clause 3 extended relief to dealers in cooked food, including beverages, but expressly excluded goods falling under entries 53 and 54 of the First Schedule, which covered Indian-made and foreign-made foreign liquor. Because bar attached hotels sold liquor, they fell within the exclusion and could not claim the exemption on goods used in preparing cooked food for sale. The notification therefore applied only to hotels and restaurants other than bar attached hotels.

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Issues: Whether bar attached hotels were entitled to exemption under S.R.O. No. 363/92 on purchase turnover of goods used in preparing cooked food for sale.

Analysis: The notification granted exemption from tax under section 5A of the Kerala General Sales Tax Act, 1963 only to the persons and goods specifically covered by its terms. Clause 3 extended the benefit to dealers in cooked food including beverages, but expressly excluded dealers in goods falling under entries 53 and 54 of the First Schedule. Since those entries covered Indian made and foreign made foreign liquor, the exclusion operated against bar attached hotels that sold liquor. The notification therefore applied only to hotels and restaurants other than bar attached hotels.

Conclusion: Bar attached hotels were not entitled to the exemption under S.R.O. No. 363/92 on the purchase turnover of goods consumed in preparing cooked food for sale where liquor was also sold.

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