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2020 (5) TMI 501 - MADRAS HIGH COURTReopening of assessment - Escapement of turnover - whether the restaurant of the petitioner was part of its One Star service and whether separate registration in 2011 for the running a Bar will have any bearing on the assessment made in the impugned orders? - HELD THAT:- The registration granted to the petitioner by the Ministry of Tourism, Department of Tourism on 12.11.2009 was subject to petitioner complying with all the regulatory conditions for classification/to classification of hotels and other terms and conditions to be introduced by the Department from time to time - There is no clarity as to whether separate kitchen and dining area existed for provision of One Star Hotel Service by the petitioner independent of the restaurant with the kitchen for which the petitioner had obtained registration earlier on 19.05.2008 vide TIN No.3382242419. If the petitioner had shown the kitchen meant for the restaurant for obtaining One Star registration/classification order on 12.11.2009, certainly the petitioner would be liable to pay tax in terms of section 7(1)(a) even if the petitioner did not actually intend to treat it as a part of its One Star Hotel business/service - if the petitioner had a separate kitchen and a separate dinning area for serving food to the guest staying in the rooms based for which the aforesaid One Star classification was obtained on 12.11.2009, the respondent would not be justified in clubbing the turnovers to demand tax under section 7(1)(a) of the Act. The finding of the respondent in the impugned orders that the services in the restaurant and the bar were interlinked with each other remains unsubstantiated - there are sufficient indications to the effect that after 2011, the Commercial Tax Department also wanted to treat the service provided by the petitioner to its guest staying in its hotel rooms/visiting the bar under One Star service and the food served in the restaurant differently from 2011. However, in absence of proper discussion on facts in the impugned order and adequate materials, any categorical finding on the same could not be delivered. Impugned orders are set aside and the cases are remitted back to the respondent to pass fresh orders for the respective assessment year within a period of 6 months from date of receipt of this order - Petition allowed by way of remand.
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