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2010 (11) TMI 897 - KARNATAKA HIGH COURTEstimation of turnover - Whether the assessing authority arbitrarily bifurcated the total turnover into two parts—one for taxation purpose giving benefit of composition of tax under sub-section (4) of section 17 of the Act and the other one under sub-clause (a) of clause (3) of section 5 of the Act as contested by assessee? Held that:- The hotel and the restaurant business of the petitioner will not be changed by mere fact it also provides to its guests in the banquet hall. Therefore, the authorities were wrong in bifurcating the receipts of the petitioner and categorising them for a portion under section 17(4) of the Act and other portion to a tax at the rate of 10 per cent. under section 6 of the Act. So far as the total turnover tax of this revision petitioner is concerned, we again have to see what is the total turnover of this dealer. So far as the case of the present petitioner, it attracts sub-clause (b) of clause (1) of rule 6 of the KST Rules and the total amount paid or payable to the dealer as the consideration for the sale, supply or distribution of any goods other than those coming under clause (a) where such sale, supply or distribution has taken place inside the State would be the total turnover and the authorities ought to have taken such total amounts as the turnover upon which the composition of tax as contemplated under section 17(4) of the Act had to be levied. Revision petition allowed
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