LAZARUS ALOSIUS Vs. STATE OF KERALA

JUDGEMENT

(1.) 'Whether sales tax varies with place of business' is the question for consideration. This question has been referred to Full Bench by a reference order made by Division Bench in S.T.Rev. Nos. 312 and 313 of 2003. There are two previous judgments of this Court on this point The first is in Vilasini v. State of Kerala, 2001 (1) KLT 320 = 2001 (9) KTR 411 (Ker.). Referring to Entry 87 of Schedule I of Kerala General Sales Tax (for short 'K.G.S.T. Act'), it was held that soda is taxable in the said Entry, and, then, on a question of fact, it was held that the sales were not exigible to sales tax in the said case, as the sales tax already suffered and being single point tax, second sales were held to be not liable to tax. There were no arguments that soda is not traceable to Entry 87, but taking that the above case laid down a proposition that sale of soda in Bar attached hotels attracts sales tax in Entry 87, another Division Bench, in T.R.C. No. 99 of 1999 held that sale of soda in Bar attached hotels comes within the ambit of Entry 87 and that it is taxable at 20%. The Division Bench, which referred the matter to the Full Bench, differed with the said view and holding that the issue needs a fresh look, has referred the matter to the Full Bench. Other similar matters also are clubbed later and that is how this batch of cases has been heard.

(2.) In S.T.Rev. No.355/2003, the assessment year is 1997-1998 while in S.T.Rev. . Nos. 312 and 356 of 2003, the assessment year is 1998-1999.In S.T.Rev. No. 245 of 2004, the assessment year is 2000-2001 and in S.T.Rev. No.269 of 2004, the assessment year is 2001-2002. These revisions have been filed aggrieved by the orders of the Sales Tax Appellate Tribunal that the sale of soda in Bar attached hotels is exigible to tax under entry relating to the sale of soda regardless of the place of sale.

(3.) The Entries underwent change in the assessment years from 1997 to 2002. For the period from 1.4.1997 to 31.3.1999, Entry 87 to Schedule 1 reads as follows: <p>Entry No. Description of goods Point of levy Rate of tax 87 Non-alcoholic drinks, At the point of 20 squashes, sauces, aerated first sale in the State waters, mineral water, beverages, Glucose D, Glucovita and similar items whether bottled, canned or packed. From 1.4.1999 to 31.12.1999, the relevant Entry was 124A, which reads as follows: Entry No. Description of goods Point of levy Rate of tax 124A Squashes, sauces, soda, At the point of 20 mineral water, Horlicks, first sale in the State Boost, Bournvita, Complan, Glucose D, Glucovita and similar items whether or not bottled, canned or packed. From 1.1.2000, the Entry changes to 141, which reads as follows: Entry No. Description of goods Point of levy Rate of tax 141 Squashes, sauces, At the point of 20 fruit juices, fruit pulp, first sale in the State soda, mineral water, Horlicks, Boost, Bournvita, Complan, Glucose D, Glucovita and similar other items whether or not bottled canned or packed.