SAGARIKA HOTEL Vs. UNION OF INDIA

JUDGEMENT

(1.) THESE writ petitions were heard together as common points of law and fact are involved, and this judgment will govern them all.

(2.) THE petitioners run hotels on the sea beach at Puri with facilities for lodging and boarding of the guests. Assessments for the year 1983-84 for all the hotels and assessment for M/s. Puri Hotel Private Limited for the year 1982-83 in addition were completed. The assessments were based on daily estimate of sale of food, eatables and beverages sold to the guests. It was noticed that composite bills including charges for lodging and boarding were issued to the guests.

(3.) THE Constitution (Forty-sixth Amendment) Act, 1982 which was assented to by the President on 2nd February, 1983 gave legislative competence to the States to levy sales tax on the sale turnover of food, eatables, beverages and drinks meant for human consumption. In consonance with the said amendment, the definition of "sale" in section 2 (g) was substituted by the Orissa Sales Tax (Amendment) Act, 1984 making it much more comprehensive, whereby, under sub-clause (vi), turnover of sale of food or any other article for human consumption or any drink (whether or not intoxicant) is exigible to sales tax and became effective from 7th April, 1984. By virtue of this amendment, sales tax was not exigible on the sale turnover of food, eatables and beverages prior to 7th April, 1984, which means, up to the end of the assessment year 1983-84 such turnover was not exigible either with sales tax or additional sales tax.