M/S. HOTEL ALAKANANDA vs COMMERCIAL TAX OFFICER .

The Supreme Court analyzed Section 7 of the Kerala General Sales Tax Act, 1963, as amended, regarding the payment of turnover tax by bar attached hotels. The Court held that the option for compounding tax must be exercised annually and clarified the calculation methods for tax liability based on the purchase value of liquor or previous turnover tax. The judgment in Writ Appeal No. 1471/08 was set aside, and the matter was remitted for reconsideration in accordance with law, following the precedent set in M/s Varkisons Engineers v. State of Kerala.