Turnover-based sales tax exemption applies only to goods expressly covered by the schedule entry, not excluded beverages.

Section 5B of the Kerala General Sales Tax Act applies only to dealers in cooked food including beverages whose turnover exceeds the statutory threshold, where licence fee is payable in lieu of tax. Item 12 of the Third Schedule grants exemption only to cooked food, coffee, tea and similar articles served in specified premises, and only for goods actually covered by that entry. The exemption does not extend to beverages such as juices, cool drinks and ice cake, because those items fall outside item 12. The turnover threshold in section 5B does not enlarge the exemption, so tax under section 5(1) remains chargeable on goods outside the schedule entry.

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Issues: Whether a dealer in cooked food and beverages with turnover below the statutory threshold could claim the benefit of section 5B of the Kerala General Sales Tax Act, 1963, and thereby avoid tax under section 5(1) on items not covered by item 12 of the Third Schedule.

Analysis: Section 5B applies only to dealers in cooked food including beverages whose turnover in a year exceeds five lakh rupees, in which event licence fee is payable in lieu of tax under sections 5 and 5A. Item 12 of the Third Schedule grants exemption only to cooked food, coffee, tea and like articles served in a hotel, restaurant or similar place when the turnover does not exceed five lakh rupees. The exemption is confined to the goods specifically covered by the entry and does not extend to beverages such as juices, cool drinks and ice cake, which do not fall within that entry. The turnover threshold in section 5B does not enlarge the exemption for those items.

Conclusion: The dealer was not entitled to invoke section 5B for the disputed beverages, and tax under section 5(1) was rightly levied on those items.

Final Conclusion: The revision petitions failed because the exemption and licence-fee scheme did not protect the turnover from tax on goods outside item 12 of the Third Schedule.

Ratio Decidendi: A turnover-based exemption or licence-fee provision applies only to the goods and conditions expressly covered by the statute, and cannot be extended to items outside the specified entry.

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