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2015 (11) TMI 354 - HC - VAT and Sales TaxChallenge to section 3C read with section 2(5B) of the Karnataka Tax on Luxuries Act, 1979 (KTL) as ultra vires entry 62 of List II of the Seventh Schedule to the Constitution - Inclusion of only those halls that are used for the purpose of marriages, receptions or matter related thereto - whether the amenities provided by the BIEC which organizes business functions or exhibitions is chargeable to luxury tax and whether it falls within the expanded definition of "marriage hall" under amended section 2(5B) - Held that:- In an unreported decision of this court, Magaji's case [2003 (5) TMI 499 - KARNATAKA HIGH COURT] was impliedly overruled. But, the fact remains that charging rent above ₹ 5,000 for marriage hall and similar activities and functions forms the basis and appears to be reasonable classification so far as charging for luxury provided similar to several other hotels, holiday resorts and clubs where luxury tax is being charged. Under the expanded definition of the amended section, the exhibitions so held with the amenities/facilities provided also has to be treated as extra comforts and when the rental is above ₹ 5,000 for providing luxuries to be charged though it is sought to be argued by the petitioner's counsel that, what is provided under section 3C of the Act is only to attract charges on luxuries provided in marriage hall. - Though the petitioner had been exempted from paying tax on the ground that there is no provision provided under the charging section 3C, the petitioner cannot seek the aid and assistance of the Division Bench judgment rendered during January 2011 as the ratio laid down therein on January 22, 2011 (Indian Machine Tool Manufacturers' Association v. State of Karnataka [2011 (1) TMI 1253 - KARNATAKA HIGH COURT] is nullified by way of amendment which came into effect from April 1, 2012 and by virtue of the same, the exhibition halls also come within the definition of section 2(5B) of the Act and as such, exigible to luxury tax. - Decided against assessee.
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