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2011 (1) TMI 1292 - HC - VAT and Sales TaxWhether the Sales Tax Appellate Tribunal was justified in holding that the respondent-hotel, which got classification as a three star hotel with effect from September 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 for any period prior to the date of granting star classification? Held that:- Star hotels referred to in entry 46 only mean hotels classified to be a star hotel by the approval and classification committee con stituted by the Government of India. Admittedly, the respondent could not have collected tax at eight per cent for any sale of cooked food or beverages prior to September 11, 2002. In fact, if tax was collected under entry 46 for any period prior to September 11, 2002 then the respondent would have been liable for penal action. So much so, we feel that the star classification referred to in entry 46 is the star classification provided by the Tourism Department for recognition and approval of star hotels. Liability for tax on cooked food which is generally served in hotels is fixed under the statute with reference to the classification of hotels. In fact, only bar attached hotels and star hotels are specifically covered by entry 46. However other hotels engaged in sale of cooked food or beverages are covered by section 5B, which provides for collection of licence fee. In view of the provisions as above, we feel the respondent is liable for payment of tax at eight per cent under entry 46 from September 11, 2002 onwards, when the approval by the classification committee is made effective. For the periods until then, the responden
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