Cakes N Bakes Vs Commercial Tax Officer (Madras High Court)
The Madras High Court, in the case of Cakes N Bakes Vs Commercial Tax Officer, dismissed a petition seeking tax exemption on bakery products sold by a snack bar, affirming the earlier decision of the Sales Tax Appellate Tribunal. The core issue before the court was whether bakery products sold by a restaurant/snack bar are covered under the tax exemption notified by the Government of Tamil Nadu in G.O.P. No. 570, dated June 10, 1987.
Background of the Case
The petitioner, Cakes N Bakes, a registered partnership firm, operates a restaurant/eating house in Chennai and sells various food, drinks, and bakery products. The firm is an assessee on the file of the Commercial Tax Officer. The petitioner contended that they were entitled to the exemption benefit under G.O.P. No. 570, as their establishment was licensed by the Chennai Corporation to run a snack bar.
The petitioner referenced a favorable decision by the Tamil Nadu Taxation Special Tribunal (in T.C.(R) No. 2649 of 1997), where the Tribunal had previously found that bakery products sold by the assessee fell under the general heading of “food and drinks” mentioned in the Government Order, thereby granting the exemption. However, the Sales Tax Appellate Tribunal subsequently ruled against the petitioner, holding them ineligible for the exemption, which led to the institution of the present Writ Petition.
