2009 (4) TMI 435

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.... Sales Tax Act, 1963 (for short, "the 1963 Act") introduced on October 24, 2006 with retrospective effect from July 1, 2006 could be applied to those dealers who had contracted for payment of turnover tax at the compounded rate under the alternate method of taxation provided for under the unamended section 7 for the assessment year 2006-07? The second and more important question which arises for determination is whether section 7(a) and section 7(b) operate in different spheres and if not whether the said amended section violates article 14 and article 19(1)(g) of the Constitution as contended in the writ petition. For the sake of convenience, we reproduce hereinbelow facts in M.R. Tourist Home v. Sales Tax Officer (Civil Appeal arising ou....

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....tained in sub-section (2) of section 5, any bar-attached hotel, not being a star hotel of and above three star hotel, heritage hotel or club, may, at its option, instead of paying turnover tax on foreign liquor in accordance with the provisions of the said sub-section pay turnover tax on the turnover of foreign liquor calculated, - (a) at one hundred and forty per cent of the purchase value of such liquor, in the case of those situated within the area of a municipal corporation or a municipal council or a cantonment, and at one hundred and thirty five per cent of the purchase value of such liquor, in the case of those situated in any other place; or (b) at one hundred and fifteen per cent of the highest turnover tax payable by it as conced....

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....he return. The tax payable for a month will be the higher amount so worked out. This will be subject to revision based on the annual figures." (emphasis supplied) At the outset, we may state, that, both the above questions are interconnected. As regards the first question, it may be stated that a similar question arose before us in the case of Varkisons Engineers v. State of Kerala (S.L. P. (C) No. 1471 of 2008). By Order dated April 23, 2009 we have remitted the case for reconsideration in accordance with law. For the reasons given in our order dated April 23, 2009 See [2009] 25 VST 1. in the case of Varkisons Engineers v. State of Kerala (S.L.P. (C) No. 1471 of 2008), we set aside the impugned judgment dated September 28, 2007 in Writ A....