TaxTMI 
TaxTMI 
1990 (8) TMI 358
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.... customers in the restaurant?" 2.. The applicant runs a restaurant in the name and style of "Yogi Restaurant" at Nagpur where food-stuff and drinks are served. For the period from April 1, 1971 to March 31, 1972 the applicant was assessed for sales tax on the turnover of sales of these articles in the restaurant. One of the contentions raised by the applicant was that it was charging a minimum floor charge of Rs. 10 per person for the cabaret show in the night time and these charges should be treated as entertainment charges and should be deducted from the total turnover. On consideration of various factual aspects, the said deduction was not allowed. The tax assessed was Rs. 5,353.53. The applicant preferred first appeal before the Assi....
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....Constitution following clause (29A) was inserted after clause (29). "tax on the sale or purchase of goods' includes- (a)-(e) ........................ (f) a tax on the supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink (whether or not intoxicating), where such supply or service is for cash, deferred payment or other valuable consideration, and such transfer, delivery or supply of any goods shall be deemed to be a sale of those goods by the person making the transfer, delivery or supply and a purchase of those goods by the person to whom such transfer, delivery or supply is made." By section 6, which is a provision relat....
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....ection 8 of the above Amending Act is a provision relating to validation and saving, by which it has been given retrospective effect in certain matters. 5.. Learned counsel for the applicant strongly relying on the ratio of the decision of the Madras High Court in Sree Annapoorna v. State of Tamil Nadu [1986] 63 STC 18 has contended that since the above deeming definition of the term "sale" refers only to the period after February 2, 1983, it cannot validate levy in the instant case which is for the earlier period. We are unable to accept the above submission. The constitutional amendment enlarged the scope of entry 54 in List II and conferred in the matter legislative competence to the State Legislature which was found absent by the Sup....
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....words "one rupee and fifty naye paise" existed in place of words "two rupees". This difference has no bearing on the issue involved in this reference. What is material is that the concept of levy of sales tax on cooked food and drinks served for consumption at the restaurant already existed in the Act at the material time and before February 2, 1983, when the constitutional amendment was made. 7.. We may mention that even under the Bombay Sales Tax Act, 1946, there existed a concept of levy of sales tax on food served and supplied in hotel or restaurant and this has been judicially noticed and interpreted by this Court in the case of Commissioner of Sales Tax v. Lala Lajpatrai Hotel [1975] 35 STC 368. 8.. Close examination of the case....