TaxTMI 
TaxTMI 
2020 (8) TMI 780
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....f Entry No.150 of the First schedule to the Tamil Nadu General Sales Tax Act, 1959 (TNGST) was challenged. Entry 150 of the First schedule to the TNGST Act, 1959, w.e.f. 04.10.1980 reads as under:- "Articles of food and drinks sold to customers in three star, four star and five star hotels, as recognised by Tourism Department, Government of India whether such articles are meant to be consumed in the premises or outside." 3.The said Entry sought to levy of sales tax for the first time on the sale of food articles in Star Hotels. It was challenged. In Sangu Chakra Hotels Private Limited Vs. The State of Tamil Nadu, (1985) 60 STC 125, this Court had struck down the above Entry. 4. These amendments to TNGST Act, 1959 and KGST Act....
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....was issued. It granted the waiver of interest to the petitioner for the period between 01.02.1985 and 24.03.1989. It prescribed conditions, i.e. Hoteliers should not have collected tax from the customers. 8. The petitioner was thereafter issued with notice dated 30.11.1999. The petitioner was called upon to produce documents to substantiate that it had not collected tax on the sale of food & drinks for the period between 1981-82 and 1984-85 upto 31.01.1985. The petitioner replied to the same and furnished certain documents vide letter dated 07.12.1999, to substantiate that no tax was collected by it. 9. The petitioner informed the Assessing Officer that in respect of the Assessment Years 1983-84 and 1984-85, taxes were collected by th....
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.... and therefore, the assessing authority has to make fresh assessments by exempting the food and drinks turnover and raising fresh demands, if any. However, if any tax has been collected by the assessee on food and drinks from 18.03.1981 to 02.02.1983, then the assessments made already are valid, and this position may be informed to the assessee. (c) For the period from 03.02.1983 to 31.01.1985, on the sales of food and drinks the assessee is liable to tax, whether tax has been collected or not. (d) However, in respect of the sales turnover of ice-creams, assessed for the period from 18.03.1981 to 31.01.1985, the assessing authority shall verify whether the rate of tax adopted in the assessments is correct in terms of the o....
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....iod between 03.02.1983 and 31.01.1985, and therefore its case should be considered favourably. 15. The impugned G.O. has been passed merely based on records, but without any discussion on the representation of the petitioner and the communication of the principal secretary/Commissioner of Commercial tax in G.O.Ms.No.157, Commercial Taxes and Religious Endowment Department dated 22.04.1996. 16. The introduction of Entry 150 pre-dated the 46th amendment to the Constitution of India pursuant to which Sub-clause (29-A) was incorporated under Article 366 to the constitution of India, w.e.f. 02.02.1983. By virtue of the aforesaid amendment, the definition on tax of sale or purchase of goods was for first time introduced in the Constitution.....