9911796707
TMI Blog2000 (6) TMI 787X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Madras High Court in [1985] 60 STC 125 (Sangu Chakra Hotels Private Limited v. State of Tamil Nadu) and even otherwise the appellants never applied for or granted recognition by the Tourism Department of Government of India, making the said entry inapplicable to the appellants. The first appellate authority decided the two appeals by a common order dated March 4, 1987. The first appellate authority allowed the appeals upholding the contention of the assessee as follows: "I conclude that the appellants' hotel has not been recognised by the Department of Tourism as an approved hotel. The item 150 of the First Schedule has been struck down by the High Court of Madras in the case of Sangu Chakra Hotels Private Limited reported in [1985 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and utensils of Hotel Dwaraka, a two star category hotel were taken by the appellants from the owners under a document of lease deed dated April 14, 1977 and the lessees, viz., Woodlands Hotel Private Limited are in possession of the premises and were running the hotel business boarding and lodging which was in continuation with the hotel business of the lessors. According to item 150 of the First Schedule the articles of food and drinks sold in hotels classified or approved by the Government were liable to tax at 10 per cent. Hotel Dwaraka was a two star category hotel approved by the department of Tourism, Government of India and it was still in existence and continues to function as per the official records of the Tourism Department. So ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is Schedule, sold to customers in hotels classified or approved by the Department of Tourism, Government of India." It is not disputed that the appellants, by themselves were not recognised by the Department of Tourism. It is also not disputed that the appellants never even applied for such recognition. Further, the lessor Hotel Dwaraka is a different entity from the appellants known as M/s. Woodlands Hotel Private Limited. The constitution of the two institutions are totally different and the appellants cannot for any reasons, be held responsible for the actions or omissions of the lessor Hotel Dwaraka. These being the admitted position. We can look into the lease deed between Hotel Dwaraka and the appellant dated April 14, 1977. The prea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e are very clear in our mind that the approval granted by the Department of Tourism, Government of India, is personal to the institutions to which it is granted. The approval depends upon the efficiency and capability of the institutions to maintain the standards prescribed by the Department of Tourism. Therefore, it is idle to contend that when a lease was granted by Hotel Dwaraka, the approval was also automatically transferred to the lessee (appellant). In fact there is no reference to the approval in the lease deed. Further, we have seen that Hotel Dwaraka totally discontinued their boarding and lodging business and terminated the service of all their workmen and employees. Therefore, the exercise of the institutions Hotel Dwaraka was ..... X X X X Extracts X X X X X X X X Extracts X X X X
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