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2015 (8) TMI 1130 - HC - VAT and Sales TaxExercise of Revisional powers – Validity – Petitioner seeking to quash proceedings, assessment order issued in pursuant to said proceedings and notice of demand – Petitioner contended that there was limitation in exercising powers under section 6(5) and reopening assessment by invoking section 8(1) of Act suo moto by revisional authority – Whether there is any period of limitation for exercising suo moto power of revision – Held that:- not in dispute that section 8(1) does not provide any specific period of limitation for exercising suo motu revisional power – However assessment and reassessment can be made only by assessing authority who has to exercise its powers under section 6 of Act – Assessment under normal circumstance becomes final after period specified under section 6(5) of Act – Since case relates to assessment year 2002-2003, assessment can be reopened only on or before March 31, 2008 – Apparently, proceedings were issued only on May 30, 2009 – Hence writ appeal deserves to be allowed quashing section all further proceedings pursuant to it – Decided in favour of Assesse. Luxury Services – Taxability – Appellant seeking declaration that certain services rendered outside hotel were not liable to be taxed under Kerala Tax on Luxuries Act, 1976 – Held that:- It was not case of petitioner that their customers were availing services of outside agencies by themselves – "luxury" that customers of appellant received from various other agencies outside hotel were admittedly billed by appellant – Therefore, it was luxury which was provided by appellant to its customers, though it was outside premises of hotel – Therefore while interpreting section 2(ee), 2(f) and 4(1), "in the hotel" as appearing in said provision has to be read as "by the hotel" as well – Incidence of luxury tax was for luxury that was provided by hotel and limiting levy of tax to services provided inside hotel will be giving very narrow meaning to language used in statute – Appeal dismissed.
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