STATE OF MADRAS Vs. H KANCHILAL

JUDGEMENT

(1.) THIS appeal is by the State against the decree of the lower courts holding that the assessment of the sales tax at the enhanced rate of 4 1/2 pies in the rupee in respect of the turnover of the sweet-stall of the plaintiff is not legal and that the State is not entitled to levy the tax at that rate. The decision was given by the learned District Munsif of Coimbatore and confirmed in appeal by the learned District Judge of Coimbatore. The respondent has been running an establishment by name ananda Bhavan in Big Bazar Road , Coimbatore.

(2.) THE establishment consists of a restaurant section, pan beedi shop section, locks section and sweet-stall. We are now concerned only with the restaurant section and the sweet-stall, as the turnover of the pan beedi section and the locks section are not sought to be assessed at the enhanced rate of 4 1/2 pies in the rupee under the proviso to section 3 (1) (b) of the Madras General Sales Tax Act. All the four lines of business are conducted in the same building by the common proprietor, the respondent. THEre are separate accounts for each of the businesses and as regards the restaurant section and the sweet-stall section, it is stated that the purchase for preparing sweets and other articles of food and drink in the restaurant section and the sweet-stall are made together, but the sales are entered in different accounts. A common licence is issued for running both the restaurant and the sweet-stall, which are having separate door numbers, the sweet-stall section bearing door No. 114, while the rest of the building bears door No. 115. THEre is a separate entrance leading to the sweet-stall through which the public can go to that stall without the necessity of using the restaurant for the purpose. Sweetmeat and other edibles are no doubt commonly prepared for the use of the restaurant and the sweet-stall. From the evidence of P. W. 1, the son of the plaintiff-respondent, it is seen that there is an interchange of sweets kept in the restaurant and the sweet-stall when there is demand and when a particular variety is exhausted in either of these places. P. W. 1, however, says that when a particular kind of sweet is exhausted in the sweet-stall, and is available in the restaurant, it is taken to the sweet-stall, but no account is kept of this interchange. It is admitted that only after 1st August, 1949, that separate accounts were being maintained.