1994 (12) TMI 310

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....rom April 1, 1982, the basic rate of tax payable by any dealer under the said Act on the sale of food and drinks to their customers in a hotel or restaurant. By amendment to the Act, by Act 13 of 1982 with effect from April 1, 1982, the rate of tax was increased to 5 per cent. The question that arises for consideration is whether section 8-A(3-A) of the Act which was in force at the relevant time would be attracted to the facts of the case: "If the rate of tax payable under this Act in respect of any goods or class of goods gets modified by an amendment to this Act, notification, if any, issued in respect of such goods or class of goods under clause (a) of sub-section (1), shall, with effect from the date from which such amendment comes ....

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....d that section 8-A which empowers the State to grant exemption and reduction in tax specifies either such exemption or reduction in tax with reference to the rate in respect of specified goods or class of goods at all points in the series of sales by successive dealers or with reference to specific class of persons in regard to whole or part of their turnover and section 8-A(3-A) is applicable to only notification issued under sec- tion 8-A(1)(a) of the Act and not in respect of any notification issued under section 8-A(1)(b) of the Act. The notification issued in this case on March 10, 1982, falls under section 8A(1)(b) of the Act. 4.. Learned Government Pleader countering the submissions made on behalf of the petitioner urged that the ....

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....nderstood not only as a notification issued under section 8-A(1)(a) but also under sec- tion 8-A(1)(b) of the Act as it relates to the reduction in the rate of tax applicable to a class of dealers. The reduction of tax is applicable or relatable to sec- tion 8-A(1)(a) whereas the class of dealers to whom it is applicable is relatable to section 8-A(1)(b) of the Act. In that view of the matter, we must say that the notification under consideration is one issued as a composite notification under section 8-A(1)(a) and 8-A(1)(b) both. The position in law is very clear that when the Legislature alters the rate of tax it is deemed to be conscious of the fact of all notifications issued by the Government in relation to the tax structure. If the ra....