2020 (10) TMI 816

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....n For the Respondent : Mr.R.Swarnavel, GA (T) COMMON ORDER With the consent of both parties, the Writ Petitions are taken up today and heard through video conferencing. 2. The short point which arise in all these Writ Petitions are as to whether the Department was right in bringing the petitioners, which are Hotels, of non-star category, under the purview of Section 7(1)(a) of the Tami....

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....d 7(1)(b) of the TNVAT Act reads as follows: "7.Levy of taxes on food and drinks:- (1) Notwithstanding anything contained in this Act, but subject to the provisions of this Act,- a)every dealer shall pay tax on the sale of ready to eat un-branded foods including sweets, savouries, un-branded non-alcoholic drinks and beverages served in or catered indoors or outdoors by s....

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....of this Act, shall be added to the sales turnover. Explanation II-For the purpose of computing the total turnover under this subsection, the sales turnover of all business units in a common premises sharing the common kitchen or common employees shall be added to the sales turnover of the business unit having higher turnover." 6. Perusal of the Act clearly reveals that while Section 7(....

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....under the purview of Section 7(1)(a) of the TNVAT Act. As such, the levy of tax under Section 7(1)(b) and the consequential penalty imposed, cannot be sustained. However, if the respondent is granted an opportunity to rework the issue by taking into consideration the observations made in this order, the ends of justice could be secured. 8. In the light of the observations made in this order, th....