Bar Attached Hotels and Shops shall Pay 5% of  Turnover Tax as is applicable in Respect of Retail Outlets Run by Beverages Corporation: Kerala HC Dismisses Review Petition [Read Order]

In a significant case the  Kerala high court while dismissing the review petition observed that bar attached hotels and shops should pay 5%of turnover tax as it is applicable in respect of retail outlets run by the beverages corporation .

The review petition was filed by the revenue against the Judgment and Order passed by the court in favour of assessee Kallada Hotels.  . As per the judgement in cases where the return were filed on or before 31.03.2022 and turnover tax was cleared on or before 30.04.2022 by the FL3 lincencees, for the period from 22.05.2020 to 21.12.2020 and from 15.06.2021 to 25.09.2021 for the financial years 2020-21 and 2021-22, they would not be liable to pay interest for delayed filing of the returns and payment of turnover tax @ 5% on their parcel sales authorized by the Government during the Covid lock down period.

Counsel for petitioner A. Muhammed Rafiq argued that there has occurred the  an error apparent on the face of the record which occasioned the review petitioners to seek review of the Judgment and Order dated 30.11.2023 passed by this Court

Further argued that reduction of tax from 10% to 5% was not limited only in respect of the sale affected by the Bar attached Hotels during the Covid lock down period but, the exemption was granted for the period from 2014-15 to 2015-16 as per the Cabinet Note placed on record as Annexure (A) by which the decision was taken to amendment  Section 7A of the Kerala General Sales Tax Act, 1963.

Although the exemption from payment of tax up to 5% by the Bar attached Hotels on their parcel sales, would not mean that they were not required to pay the tax @ 10%, but they could have claimed refund of the 5% tax and, therefore, they were liable to pay the interest on delayed payment of turnover tax.

Mr. K. I. Mayankutty Mather, Counsel appearing for the respondents submits that the “Annexure (A) document placed on record i.e. the note put up before the Cabinet for consideration regarding the reduction of turnover tax for the period during lock down from 22.05.2020 to 21.12.2020 and from 15.06.2021 to 25.09.2021 is specific that the Bar attached Hotels and shops were required to pay 5% of the turnover tax as is applicable in respect of the retail outlets run by the Beverages Corporation.”

After considering the both submissions the single  bench judge of Dinesh Kumar Singh held that Review does not mean rehearing or appeal. Hence the bench concluded that no error was apparent on the face of the record which warrants this Court to reconsider this Judgment under review.

Also read : Kerala HC Dismisses Review Petition as Assessee Paid CGST Act as Ordered by Single Judge

To Read the full text of the Order CLICK HERE

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