9911796707
TMI Blog2012 (5) TMI 566X X X X Extracts X X X X X X X X Extracts X X X X ..... fic and Charitable Societies Registration Act, 1955, is the petitioner and exhibit P1 is its Rules and Bye-Laws. They were issued exhibits P2 and P3 pre-assessment notices proposing to complete assessment of luxury tax under the Act for the years 2002-03 to 2005-06. In these notices, it was alleged that the petitioner is providing residential accommodation and services in their seven a/c rooms, five a/c cottages and two non-a/c rooms and that therefore it is liable for luxury tax under the Act. On receipt of these notices, the petitioner submitted objection, a copy of which is exhibit P4, where it was mainly contended that the Act does not apply to social clubs such as the petitioner. They also contended that they are providing accommodatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se boat, hall, auditorium or kalyanamandapam or including those attached to hotels, clubs, kalyanamandapam and places of the like nature which are rented for accommodation for residence or used for conducting functions, whether public or private, exhibition; ... 4(2) (a). in respect of a hotel, for charges of accommodation for residence and other amenities and services provided in the hotel, excluding food and liquor,- (i) at the rate of ten per cent (per room) for hotels, in respect of rooms where the gross charges of accommodation for residence and other amenities and services provided is (above rupees two hundred up to five hundred) per day; (ii) at the rate of fifteen per cent for hotels in respect of rooms where the gross charge of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he petitioner is a "hotel" as defined in the Act. To answer this question it is necessary to examine what is a hotel for the purposes of the Act. As per section 2(e) which defines "hotel", a building or part of a building where residential accommodation is provided for monetary consideration is a hotel. It is also clarified that the said activity must be carried on in a building or part of a building, by way of business. In view of the language used in the definition of the expression "hotel", it must be held that, to be a "hotel" as defined under the Act, the establishment need not be one which is engaged exclusively in accommodating guests or providing them the other luxuries. On the other hand, if a building or part of a building, which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act is not to be understood in the commercial sense of the term and that only common parlance meaning need be attributed to the expression. Therefore, in the context of the Act, the expression "business" only means that which activity one is seriously or principally concerned with. If the expression is so understood, it has to be held that letting out rooms and cottages on rent to their members or their guests, an activity carried on by the club in terms of its by laws, is a business activity of the club. The learned senior counsel for the petitioner then relied on section 4(2A) of the Act and contended that in respect of clubs a separate provision has been made by the Legislature and therefore, there is no other liability under the Act. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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