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2015 (11) TMI 1146 - HC - VAT and Sales TaxChallenge to the luxury tax is levied on the hospitals in view of the amended definition of the “luxury provided in a hospital” by virtue of the amendment to clause (7A) to section 2 of the Assam Tax on Luxuries (Hotels and Lodging Houses and Hospitals) Act, 1989 - Held that:- It is pertinent to note that in judgment in Godfrey(supra) the Supreme Court has laid down the test to determine whether the facility is a luxury or otherwise, “the requirements of the common man is a determinative factor to find out whether any facility is a luxury or otherwise. It is further observed that the facility so provided should be costly and generally recognised as beyond the necessary requirement of an average member of the society” - If this test is considered, any facility like the air-conditioner and television provided to the patient or his attendant in a private hospital should definitely be construed as a luxury and liable for luxury tax. Besides, the Assam legislature has brought about an amendment to the Assam Tax on Luxuries (Hotels and Lodging Houses and Hospitals) Act, 1989, specifically to define the “luxuries provided in a hospital” with a determinate connotation. The said definition includes the facilities like air-conditioner and television provided to the patient or his attendant is within the ambit of a luxury. - The dissection of the definition of “luxury provided in the hospital” consists of multiple components: a residence provided to a patient or his attendant in the hospital with the facility of air-conditioner and television or radio or any other services provided thereto in connection with the residence. - The rate of tax is variable as per the luxury provided in a hospital. If only a room is provided without having the facility of air-conditioner and television, such a situation would not come within the definition of “luxury provided in the hospital” - Decided against assessee.
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