Turnover threshold for hotel and restaurant sales tax liability must be computed on aggregate branch turnover, not each outlet separately.

For liability under entry 57(i) of the Kerala General Sales Tax Act, the turnover threshold of twenty lakhs rupees is to be tested on the dealer's aggregate turnover across all branches, not on the turnover of each individual hotel or restaurant. The court treated the hotel or restaurant as the relevant business unit, read "turnover" in section 2(xxvii) as the dealer's total sales, and noted that the Act contemplates a single registration with branch registrations. The earlier view excluding turnover from other branches or other goods sold in the hotel while testing the threshold was held incorrect and overruled.

---

---

Issues: Whether, for liability under entry 57(i) of the First Schedule to the Kerala General Sales Tax Act, 1963, the turnover threshold of twenty lakhs rupees is to be determined on the basis of the dealer's aggregate turnover across all branches or only on the turnover of each individual hotel or restaurant selling cooked food and beverages.

Analysis: The expression "which" in entry 57(i) was held to refer to the hotel or restaurant as a unit of business run by the dealer, not merely to cooked food and beverages sold in isolation. In light of the statutory definition of "turnover" in section 2(xxvii), turnover is the aggregate amount of sales by the dealer and is not confined to a single outlet when the dealer carries on business through multiple places of business. The scheme of the Act also contemplates a single registration with branch registrations for each place of business, showing that the liability is to be tested on the dealer's combined turnover from all branches. The earlier contrary view, which excluded the turnover of other goods sold in the hotel while testing the threshold, was held to be incorrect and was overruled.

Conclusion: The threshold under entry 57(i) applies to the dealer's combined turnover from all hotels and restaurants, and the assessee was liable to tax on the entire turnover of cooked food and beverages.

Final Conclusion: The revisions failed, the levy was sustained, and the contrary earlier view on the computation of turnover under entry 57(i) was overruled.

Ratio Decidendi: For entry-based sales tax liability tied to a turnover threshold, the relevant turnover is the dealer's aggregate turnover from the business as a whole, where the statute defines turnover in that broad manner and the dealer operates through multiple branches.

---