TaxTMI 
TaxTMI 
2011 (1) TMI 1292
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....tember 11, 2002, is not liable to pay tax on cooked food and beverages sold in the hotel at eight per cent under entry 46 of the First Schedule to the Kerala General Sales Tax Act, 1963 (hereinafter referred to as, "the Act", for short) for any period prior to the date of granting star classification. We have heard learned Government Pleader for the State and Shri C.E. Unnikrishnan, learned counsel appearing for the respondent-assessee. The respondent is a resort hotel which was carrying on business during the whole financial year 2002-03. The application filed by the respondent before the Central Tourism Department for classification of its hotel as a star hotel was allowed by the Regional Director and Convener, HRACC (Hotel Approval And....
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....and entry 46 of the First Schedule to the Act for the period commencing from April 1, 2002 to September 10, 2002, we extract hereunder section 5B and entry 46 of the First Schedule to the Act. "5B. Levy of licence fee on cooked food.-Any dealer in cooked food, including beverages sold or served not falling under the entries against (serial Nos. 46 and 60 of the First Schedule) whose turnover in a year exceeds five lakh rupees, shall pay annual licence fee at the rate of (five hundred rupees) for every one lakh rupees or part thereof in excess of five lakh rupees, in such manner as may be prescribed: Provided that such dealer shall not be liable to pay tax under subsections (1) and (2) of section 5 and under section 5A." "Entry 46 in the ....
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....t the hotel has all the facilities, which entitles for star classification for any period prior to the date on which the decision is taken by the Classification and Approval Committee. The contention raised by the learned Government Pleader is that "star hotels or restaurants" referred to in entry 46 do not have any technical meaning and going by common parlance it only means hotel or restaurant is a class of a superior quality. We are unable to accept the Government Pleader's contention because the Act does not contemplate any sales tax authority to recognise, determine or confer star status to hotels or restaurants. On the other hand, the Tourism Department of the Government of India is the agency constituted to declare star status f....