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2016 (7) TMI 367 - KARNATAKA HIGH COURTLevy of luxury tax - whether the exhibition halls come within the definition Section 2(5-B) of the Karnataka Tax on Luxuries Act, 1979 - The premises consist of three exhibition halls, four AC conference halls of different dimensions with flexible seating arrangements in the halls, classroom, theatre and roundtable, auditorium seating four conference halls, CCTV link between four conference halls, green room and video conferencing facilities. The appellant has described the nature of activities with details, it discloses that the premises includes exhibition halls, convention centre and the events conducted by them and also stated that they provide exhibition halls, conference centre/ convention centre along with helipad area to the exhibitors for conducting exhibitions. Further, the photographs produced in the case which are not in dispute and the write up shows that the exhibition and conferences facilities at the appellant’s premises are the first of its kind in India which offer services and amenities of the highest quality at par with international standards. Held that:- With the facilities the appellant has already hosted an exhibition of over 1,10,000 sq.mt. of exhibit area. It has been able to cater to over 20,000 business visitors per day on several exhibition days. In this background, the argument of the learned counsel for the appellant that the word accommodation as mentioned in the other provisions which is consecutively missing in Section 3, the accommodation provided by the appellant cannot be levied with tax is without any substance Once the premises of the appellant falls within the definition of marriage hall and charges levy is more than ₹ 5,000/-, Section 3-C is attracted and luxury tax is leviable. Realising this fact, the appellant had approached the Government with a request to exempt from payment of tax. The power under Section - 2A could be exercised by the Government to exempt tax only when act is applicable. If the Act itself is not applicable, the question of exempting the appellant from payment of tax does not arise. In that view of the matter, viewed from many angle, as rightly held by the learned Single Judge, the appellant contention that the demand of tax is ultra vires and Act is not applicable to them is without any substance. - Decided against the petitioner.
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