HOTEL JANATHA Vs. COMMISSIONER OF COMMERCIAL TAXES

JUDGEMENT

(1.) THE revision petitioner is a registered dealer under the Karnataka Sales Tax Act, 1957 (in short "the Act" ). It is aggrieved by the order dated November 14, 1994 passed by the Tribunal in s. T. A. No. 1055 of 1988.

(2.) THE petitioner is a hotelier, selling food and drinks. For the financial year 1983-84 it declared its total taxable turnover at Rs. 5,00,191. But while making the assessment under Section 12 (3)of the Act, it was determined at Rs. 6,13,900. Despite the said fact, the assessing authority granted the benefit of composition under Section 17 (4) of the Act as substituted by Karnataka sales Tax (Second Amendment) Act, 1983 (Act No. 23 of 1983 ). But the said order was set aside under suo motu revisional jurisdiction by the Deputy Commissioner of Commercial Taxes, under section 21 of the Act by its order dated July 27, 1988, on the ground that for the year in question no composition was available in the case of hoteliers, having total turnover above Rs. 2,50,000. Against the said order the petitioner went in appeal before the Tribunal. But to its dismay the tribunal has also opined against it. This is how he has been forced to come up in revision before this Court.

(3.) SECTION 17 (4) of the Act as substituted by Act 10 of 1983 provides for composition of tax in the cases of hoteliers or restaurateur. Sub-clause (i) thereof is to the following effect :-" section 17 (4) (i) Notwithstanding anything contained in Sub-sections (1) to (3), subject to such conditions and in such circumstances as may be prescribed, the assessing authority of the area may, if a hotelier or a restaurateur (other than a hotelier or a restaurateur engaged in reselling of goods purchased by him in the course of inter-State trade or commerce) (or vending of liquor including beer) so elects, accept in lieu of the amount of tax payable by him, during any year, under this Act, by way of composition, an amount at the following rates, namely :-Sl. N o. Total turnover Rate (1) (2) (3)