State of Andhra Pradesh vs Gateway Hotel

Yogeshwar Dayal, C.J. and Upendralal Waghray, J.—C.M.P. No. 6330 of 1990. - This is an application for condonation of 33 days ''delay in filing the T.R.C. The application is not opposed. The delay is accordingly condoned.

T.R.C. 301 of 1990. - The assessee is M/s. Gateway Hotels, Banjara Hills, Hyderabad.

The Appellate Tribunal has taxed the sales of drinks (whether intoxicating or not) at the rate five paise in a rupee, in view of the provisions of section 5-C of the Andhra Pradesh General Sales Tax Act, 1957.

The case of the department was that the hotel was liable to pay sales tax on sales of liquors as provided in the Sixth Schedule to the Act. It will be noticed that the Sixth Schedule is relatable to goods in respect of which sales tax is payable u/s 5 of the Andhra Pradesh General Sales Tax Act, and not u/s 5-C thereof. In any case, there is a specific provision so far as sale of articles of food and drink in restaurants, catering houses and hotels, etc., is concerned. Therefore, we are in agreement with the Sales Tax Appellate Tribunal that in the hotel, like the assessee, sales of intoxicants for human consumption are liable to tax at the rate of five paise in a rupee, as mentioned in section 5-C of the Andhra Pradesh General Sales Tax Act.

We find no merits in this T.R.C. It is accordingly dismissed.

Petition dismissed.