Case Law Details
Tvl. National Hotel Vs Commercial Tax Officer (Madras High Court)
Madras High Court held that turnover relating to the sale of alcoholic liquor sold in the restaurant is not to be included in the turnover of foods and drinks as sale of alcoholic liquor is taxable separately.
Facts-
The specific case of the petitioner in these Writ Petitions is that there is no case made out for clubbing the turnover of alcoholic liquor sold from the licenced bar of the petitioner. It is submitted that the sales turnover of alcoholic liquor sold from the bar attached to the petitioner’s hotel, for which, the petitioner was given a bar licence under the provisions of the Tamil Nadu Prohibition Act, 1937 read with Rules made thereunder, cannot be included into the taxable turnover of food and drinks. It is submitted that the sale of alcoholic liquor was separately liable to tax only at the first point of sale at the rate prescribed in the VI Schedule and Part J of the I Schedule to the TNGST Act, 1959.
It is submitted that as per charging Section 3-D under the TNGST Act, 1959, tax is chargeable on the “total turnover” of a registered dealer. It is submitted that the turnover which has already been suffered tax at the first point of sale cannot be taxed again. It is further submitted that the petitioner has also not collected tax on sale of alcoholic liquor.
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