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2014 (7) TMI 784 - HC - VAT and Sales TaxLevy of Luxury Tax - charitable trust - running a Dharmashala incidental to its main activity of running a hospital - Tribunal levied tax under the provisions of the Madhya Pradesh Hotel Tatha Vas Grihon Me Vilas Vastuon, Par Kar Adhiniyam, 1988 - Held that:- It is not agreeable with the contention put forth by the respondents/State that activity of the Dharmashala are collectively incidental and ancillary sales and so also has already stated above the incidence of tax would arise only when under sections 3 and 4 of the Act the charging or levy of tax is attracted. For the purpose of imposing the charge, the Parliament has enacted detailed provisions in order to compute the tax liability and deviating from the provisions is not permissible. The transaction to which the provisions of the Luxury Tax Act must be applied and encompassed for determining the charge this inference flows from the general arrangement of the provisions of the Act and that which is natural has to be concluded otherwise non-mention would mean it was not intended to fall within the charging section. Title of the Act says that it is called the Luxury Tax Act of 1988 and was intended to levy tax on luxuries provided in hotels and lodging houses in the State of Madhya Pradesh and thus, the "business" of the present institution-Choithram Charitable Trust would not be amenable to luxury tax and was thus outside its purview. We have no hesitation in holding that both the impugned orders, as already stated above are contrary to the provisions of the Act and, therefore, they are hereby set aside - Decided in favour of assessee.
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