T MAHANSH Vs. ADDITIONAL COMMISSIONER OF COMMERCIAL TAXES

JUDGEMENT

(1.) THIS appeal is directed against the order of the Additional Commissioner of Commercial Taxes, Davangere Zone, passed in exercise of his powers under section 22a (1) of the Karnataka Sales Tax Act.

(2.) THE appellant is the proprietor of "balaji Bar" at Chitradurga, holding a CL-9 licence issued under the Karnataka Excise (Sale of Indian and Foreign Liquor) Rules, 1968. The appellant is also a CL-1 licensee at Chitradurga under the said Rules, under the name and style of Shanthi Enterprises of which he is the sole proprietor. The petitioner is also a registered dealer under the Karnataka Sales Tax Act, 1957 ("the Act", for short ). According to him, a branch certificate has been issued by the Commercial Tax Department according to which Shanthi Enterprises had a branch where the business of "balaji Bar" was carried on.

(3.) THE Additional Commissioner of Commercial Taxes, Davangere (Revisional authority), initiated suo motu revisional proceedings against the said order vide notice dated November 10, 1993, and subsequently passed the order dated September 1, 1994 challenged in this appeal. The revisional authority has treated the transactions which were accepted by the assessing authority as branch transfers, as sales by a CL-1 licensee to a CL-9 licensee. He has also added Rs. 2,25,000 to the taxable turnover towards sale of food and aerated waters in the Balaji Bar. He determined the total turnover as Rs. 71,72,464, the taxable turnover under section 5 (1a) as Rs. 18,70,961 and the taxable turnover under section 5 (3c) as Rs. 4,12,277 and the taxable turnover relating to food as Rs. 2,00,000 and taxable turnover of aerated water as Rs. 25,000. Feeling aggrieved, the appellant has filed this appeal.