STATE OF ANDHRA PRADESH Vs. AJANTA COOL DRINKS

JUDGEMENT

(1.) These two tax revision cases are filed by the State against the common order of the Tribunal in T.A. Nos. 230 of 1984 and 231 of 1984 dated 7/01/1988 relating to the assessment years 1979-80 and 1980-81 respectively. The respondent is carrying on the business of supply of cool drinks and serving ice-creams in the shop. The turnover of the respondent was assessed to sales tax. A revision was initially filed against the order of assessment and thereafter the matter was taken in appeal before the Sales Tax Appellate Tribunal. The Tribunal took the view that the respondent's shop fell within the purview of G.O.Ms. No. 1025, Revenue (S) dated 22/08/1986 and in that view of the matter, it allowed the appeals of the respondents by order dated 7/01/1988 It is that view of the Tribunal that is assailed in these tax revision cases.

(2.) The learned Special Government Pleader for Taxes contends that the respondent's shop in neither a hotel nor a restaurant so as to claim the benefit of G.O.Ms. No. 1025 and the Tribunal erred in allowing the appeals and exempting the turnover from the sales tax. The learned counsel for the respondent, on the other hand, submits that cool drinks and ice-creams are served in the shop and therefore the shop of the respondent falls within the meaning of "restaurant" and as sun the Tribunal has rightly extended the benefit of G.O.Ms. No. 1025.

(3.) The short question that arises for consideration is, whether cool drink house serving cool drinks, ice-creams, fruit juice and aerated water, etc., fall within the meaning of "restaurant".