TMI Blog2011 (1) TMI 1292X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re the Central Tourism Department for classification of its hotel as a star hotel was allowed by the Regional Director and Convener, HRACC (Hotel Approval And Classification Committee), India Tourism, Chennai with effect from September 11, 2002. The case of the respondent is that its liability for payment of tax on cooked food at eight per cent under entry 46 of the First Schedule to the Act starts with effect from September 11, 2002 and not for any period prior to the same. Therefore, the respondent paid licence fee under section 5B of the Act up to September 10, 2002 and thereafter from September 11, 2002 onwards the respondent started paying tax on sale of cooked food at eight per cent. However, the assessing officer treated the classifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... may be prescribed: Provided that such dealer shall not be liable to pay tax under subsections (1) and (2) of section 5 and under section 5A. Entry 46 in the First Schedule to the KGST Act. 46. Cooked food, including beverages, not falling under entry 60 of this Schedule, sold or served in bar attached hotels and/or star hotels. The contention of the learned Government Pleader is that the respondent is a resort hotel which was maintaining a class hotel from the beginning. According to him, classification of the hotel as star hotel takes a long process and time and during this period the hotel was retaining same quality and therefore on the factual position, the respondent was entitled to treat the hotel as a star hotel from t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mine or confer star status to hotels or restaurants. On the other hand, the Tourism Department of the Government of India is the agency constituted to declare star status for a hotel. In fact, there are several type of star hotels, and number of stars of the hotel increases when facilities provided are increased. Therefore, in our view, 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 r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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