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2012 (10) TMI 975 - KERALA HIGH COURTDemand notice for the production of the documents - whether the petitioner's establishment is a hotel or not? - powers conferred on the State Legislature under entry 62 of List II of the Seventh Schedule to the Constitution of India challenged Held that:- Once the respondents themselves have chosen to initiate proceedings on the basis that it is a hospital, they cannot turn around and contend before this court that establishment of the petitioner is a hotel and not a hospital. Therefore, the first contention raised by the petitioner deserves acceptance. Consequently, the Act cannot have application to the petitioner's hospital for any period prior to April 1, 2008 and hence the demand for production of documents and details for any prior period is illegal. Legislature is always within its rights to specify the items of luxury. It is accordingly that for using the accommodation for residence and the amenities and services provided in hospitals, which levy gross charges of rupees one thousand or more per day have been defined as "luxury provided in hospitals" for the purpose of the Act and in determining the gross charges, what is charged for food, medicine and professional services is excluded. By this process, the Legislature has kept out of the purview of the Act, hospitals which charge less than rupees one thousand per day. Such provisions of the Act, are within the legislative competence of the State and consequently, there is no basis for the contention that, the Act to the extent it covers hospitals, is ultra vires the Constitution. Therefore, the second contention raised by the petitioners is rejected.
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