KISHORE SEBASTIAN Vs. STATE OF KERALA

JUDGEMENT

(1.) Question raised is whether gross profit in the Bar Hotel run by the Petitioner refixed by the Tribunal at 75% is reasonable or not. We have heard Sri. Sojan James, counsel for the Petitioner and Government Pleader for the Respondent. In the normal course, we should not interfere with the estimation of gross profit because there is no substantial question of law arising in the estimation of gross profit. However, counsel for the Petitioner pointed out that hotel is located in a medium town, namely, Pala, where margin is not high. He has also brought to our notice reduced gross profit fixed in the case of another hotel and the fact that there are other bar hotels in Pala. Considering all these, we modify the Tribunal's order by refixing the gross profit at 60% as against 75% confirmed by the Tribunal, and penalty will stand proportionately reduced. However, we make it clear that this should not be taken as precedent because in any case percentage of gross profit is a matter, if required, can be fixed on a rational basis taking into account factual circumstances of each case.