STATE OF KERALA Vs. HOTEL SABRINA BAR ATTACHED

JUDGEMENT

(1.) The question raised in the sales tax revision case filed by the State is whether the Tribunal is right in granting exemption to the respondent-assessee on purchase turnover of goods consumed in preparation of cooked food for sale by them under Notification S.R.O. No. 363/92.

(2.) Heard Special Government Pleader for the State and the counsel appearing for the respondent-assessee.

(3.) According to the State, exemption is granted only under Section 5A of the Kerala General Sales Tax Act, 1963 on purchase turnover of materials of use in the preparation of cooked food for sale in hotels and restaurants, other than bar attached hotels. In other words, the respondent-assessee being a bar attached hotel is not entitled to exemption is the case of the Department. In order to appreciate the rival contentions raised by both, we refer to notification, S.R.O. 363/92, the relevant portion of which is extracted hereunder: