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2012 (5) TMI 566 - HC - VAT and Sales TaxWhether the rent realized by a club for the rooms and cottages let out to its members and their guests is exigible to tax under the Kerala Tax on Luxuries Act, 1976 ? Held that:- The expression "by way of business" used in section 2(e) to the Act is not to be understood in the commercial sense of the term and that only common parlance meaning need be attributed to the expression. Therefore, in the context of the Act, the expression "business" only means that which activity one is seriously or principally concerned with. If the expression is so understood, it has to be held that letting out rooms and cottages on rent to their members or their guests, an activity carried on by the club in terms of its by laws, is a business activity of the club. The provision of Section 4(2A) renders members of clubs also liable for tax at the rate as indicated therein and the tax liability of the members is in addition to the liability of the clubs under section 4 of the Act. Therefore, this provision will not be of any assistance to the petitioner. W.P. dismissed.
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