2009 (10) TMI 868

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....y, M/s. Hotel Saravana Bhavan. Outdoor catering is also undertaken by the petitioner. It also prepares and serves ready to eat food items like idly, dosai, vadai, noodles, fried rice, meals, cold and hot beverages, soft drinks, ice creams, mineral water, etc. Generally, the food items and drinks are made ready and served, based on the orders placed by the customers. Only items like packaged bottled drinks and ice creams, purchased from local dealers, are kept in ready form. While so, the respondent had issued the impugned notice, dated July 30, 2007, with regard to the levy of tax, under section 7A of the Tamil Nadu General Sales Tax Act, 1959, which is as follows: "Tvl. Saravana Bhavan, foods and drinks, No. 19, Vadapalani, Andava....

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....i.e., conditional exemption-the sales turnover does not exceed Rs. 300 crores in a year) under entry 81(a), (b), (c) and (d) in Part B of the Third Schedule to the TNGST Act, 1959, with effect from July 17, 1996. Such tax-not-suffered goods used in the preparation of food items by the dealers are liable to tax under section 7A of the TNGST Act. 3. It was therefore proposed to revise the assessment for the year 2000-01 under the TNGST Act and assess the turnover which would attract liability under section 7A of the TNGST Act. Actual suppression on the purchase turnover of edible oil consumed in the preparation of food by the dealers which would attract liability under section 7A of the TNGST Act Rs. 2,30,97,197 4% Actual suppr....

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....hey failed to furnish the break-up figures for the purchase of pulses and grams and separately for the purchases of chillies, coriander, turmeric, tamarind and asafoetida. In the absence such break-up figures, it is to be estimated at the proportionate ratio of 3:1 on pulses, grams and chillies, coriander, turmeric, tamarind and asafoetida. 7. Thus in partial modification of this office notice, dated January 19, 2007, it is proposed to revise the assessment for the year 2000-01 under the TNGST Act and assess the turnover which would attract liability under section 7A of the TNGST Act as shown below:  8. It is also proposed to levy penalty under section 16(2) of the TNGST Act at the appropriate rate on the tax due of the taxable t....