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2019 (2) TMI 1159 - KERALA HIGH COURTImposition of luxury tax - Validity of assessment order - imposition of penalty - case of appellant is that they do not rent out any rooms for accommodation, as is done in a hotel. They would not come under the term "luxury" for reason of there being no rooms for rent - Held that:- In the present case, the definition clause indicates very specifically and categorically as to what a luxury taxable under the provisions of the Act is. The "luxury" as provided in the various establishments enumerated in the definition clause, refers to "accommodation for residence or use" and "other amenities and services provided thereon". Hence, the accommodation could be for residence or for use - The charging section also speaks of "accommodation for residence or use", wherein the use is for conducting functions whether public or private. The computation provision speaks of the charges for accommodation, amenities and services and the word "accommodation" includes, the "accommodation for residence" and "accommodation for use". On the renting out of the hall for a public or a private function, essentially the accommodation provided is for use of the hall, for a consideration. Admittedly, the renting out is for a charge and for the period it is rented out, the rentee could use it for the function for which it has been rented out as per the agreement between the two parties. In such circumstances, it can be said that, the computation provision also provides for a determination of the tax, which is on the charges for accommodation taken by the appellants from the person, who uses the hall for a public or a private function. Appeal dismissed - decided against appellant.
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