HOTEL ASOKA Vs. COMMERCIAL TAX OFFICER

JUDGEMENT

(1.) This judgment would dispose of Writ Appeal No. 1877 of 2007 and connected appeals, which have been filed against the common judgment passed by learned single Judge in W.P.(C) No. 8711 of 2007 and connected matters, whereby petitions filed by the appellants under Article 226 of the Constitution of India were dismissed. The question which arises for determination in these appeals is whether the amended provisions of Section 7(a) and (b) of the Kerala General Sales Tax Act, 1963 can be applied to those dealers who had opted for payment of Turnover Tax for the assessment year 2006-07 before the amendment was brought into the statute and whether the dealers are entitled to pay tax at the rate prescribed in Clause (a) of Section 7 of the KGST Act before its amendment on the purchase of liquor for the assessment year 2006-07.

(2.) The appellants are registered dealers under the provisions of the Kerala General Sales Tax Act, 1963, hereinafter for the sake of brevity referred to as Act, 1963. They are running bar attached hotels within the area of Municipal Corporation, Municipal Council and other places.

(3.) Section 5(2) of the Act, among other things provides for levy of turnover tax at 10% on the sale turnover of alcohol by bar hotels. The KGST Act was amended by Kerala Finance Act, 2005 providing far payment of tax at compounded rate by bar licencees running hotels not being star hotels of and above three star classification, heritage hotel or club. The said provision reads as under: