Star hotel classification determines higher tax liability only from the date officially granted, not retrospectively.

Liability to the higher tax rate under entry 46 turned on official star classification by the competent tourism authority, and the tax department could not independently infer or retrospectively apply star status. Because the hotel was granted star classification only from 11 September 2002, it fell within entry 46 only from that date. For the earlier period, it was not a star hotel for tax purposes and remained governed by section 5B, so only the licence fee under that provision applied.

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Issues: Whether cooked food and beverages sold in a hotel became taxable at the rate under entry 46 of the First Schedule only from the date on which the hotel was granted star classification, or whether the higher rate applied for the entire year notwithstanding the later effective date of classification.

Analysis: Liability under entry 46 depended on whether the establishment was a star hotel as recognised by the competent tourism classification authority. The sales tax statute did not confer power on the tax authorities to independently determine or retrospectively infer star status. Since the approval and classification committee granted star classification with effect from 11 September 2002, the hotel could be treated as a star hotel only from that date. For the prior period, the establishment did not fall within entry 46 and remained governed by section 5B, which applies to dealers in cooked food not covered by the specified entries.

Conclusion: The higher tax under entry 46 applied only from 11 September 2002, and for the earlier period the assessee was liable only to pay licence fee under section 5B.

Ratio Decidendi: Where tax liability under a schedule entry depends on official star classification, the classification is effective only from the date granted by the competent authority and cannot be treated as operating retrospectively in the absence of statutory provision.

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