Tax waiver requests require meaningful consideration of representations and relevant facts before rejection in sales tax disputes.

A request for waiver of sales tax on food and drinks in a star hotel had to be reconsidered where the authority passed the order without meaningful examination of the taxpayer's representation and the relevant administrative materials. The court noted the bearing of Entry 150 of the Tamil Nadu General Sales Tax Act and Article 366(29-A), and found the plea that tax had not been collected from consumers relevant to the waiver claim. The impugned order was set aside to the necessary extent, and the matter was remitted for a fresh decision after hearing the taxpayer.

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Issues: Whether the petitioner's request for waiver of sales tax for the disputed period required fresh consideration in the light of its representation and the statutory and constitutional position governing levy on sale of food and drinks in star hotels.

Analysis: The dispute related to levy under Entry 150 of the First Schedule to the Tamil Nadu General Sales Tax Act, 1959 and the impact of the Forty-sixth Constitutional Amendment introducing Article 366(29-A). The petitioner asserted that it had not collected tax for the relevant period and that its representation seeking waiver under Section 17(4) read with Section 48A of the Tamil Nadu General Sales Tax Act, 1959 had not been properly considered. The impugned government order was found to have been passed on the basis of records without a meaningful discussion of the petitioner's representation and the earlier administrative materials. The Court also noted the relevance of the prior grant of waiver for another period and held that, if tax had not been collected from consumers, the claim merited consideration.

Conclusion: The request for waiver could not be finally rejected without considering the petitioner's plea on merits, and the matter had to be reconsidered by the 1st respondent after hearing the petitioner.

Final Conclusion: The impugned order was set aside to the extent necessary and the matter was remitted for a fresh decision on waiver after hearing the petitioner.

Ratio Decidendi: A request for tax waiver/remission must be decided after meaningful consideration of the representation and relevant facts, and a fresh decision is warranted where the authority passes an order without such consideration.

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