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2016 (7) TMI 75 - KERALA HIGH COURT

2016 (7) TMI 75 - KERALA HIGH COURT - [2016] 94 VST 465 (Ker) - Status of assessee - whether it is hospital as defined in Section 2(d)(e) or a hotel as defined in Section 2(e) of the Kerala Tax on Luxuries Act, 1976 - Held that:- The term 'hotel' has defined in Section 2(e) of the Act - It was in the light of the aforesaid definition of the term 'hotel' that the case of the petitioner was appreciated by this Court in the judgment in Kairali Ayurvedic Health Resort Pvt. Ltd. [2013 (2) TMI 776 - K .....

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ed in Section 2(d)(e) of the Act and on the other hand, this is a case where an ayurvedic centre is also functioning in the hotel of the petitioner. If that be so, the factual finding of the Tribunal that the petitioner's establishment is a hotel as defined in Section 2(e) of the Act cannot be said to be erroneous for any reason. - Decided against the petitioners. - O.P.(Taxes) Nos. 33, 34 and 35 of 2016 - Dated:- 16-6-2016 - ANTONY DOMINIC AND DAMA SESHADRI NAIDU, JJ. FOR THE PETITIONER : ADVS. .....

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the orders of assessment passed under the Kerala Tax on Luxuries Act, 1976 ('the Act' for short) with modifications. A reading of the order passed by the Tribunal shows that the said order was passed rejecting the contention of the petitioner that it is a hospital as defined in Section 2(d)(e) of the Act and holding that it is a hotel as defined in Section 2(e) of the Act. 2. We heard the learned Senior counsel for the petitioner and the learned Government Pleader appearing for the resp .....

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tely confirmed by the Tribunal by the impugned common order. It is this order which is challenged before us. 4. According to the learned Senior Counsel for the petitioner, a reading of the impugned order passed by the Tribunal shows that the Tribunal has restored its conclusion that the establishment is a hotel, entirely based on the judgment of this Court in the petitioner's own case, in Kairali Ayurvedic Health Resort Pvt. Ltd. (M/s.) v. Commercial Tax Officer (Luxury Tax), Palakkad and ot .....

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l also contended that as per Section 2(fb) introduced by the Finance Act, 2008, luxury provided in a hospital has been defined as accommodation for residence for use of amenities and services provided in a hospital at the rate of charges of which, excluding the charges of food, medicine and professional services, is ₹ 1000/-per day or more. He has also invited our attention to Section 4(e) of the Act providing that in respect of a hospital, levy and collection of tax shall be for charges o .....

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'hotel' did not have any relevance insofar the assessment years in question are concerned. For that reason, the counsel contended that the statutory authorities misdirected themselves in levying tax on the petitioner treating it as a hotel. 6. We have considered the submissions made. The term 'hotel' has defined in Section 2(e) of the Act which reads thus: hotel means a building or part of a building where residential accommodation is by way of business provided for monetary cons .....

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owing facilities are provided: (a) 30 luxurious air conditioned villas with satellite TV, direct dial phones, refrigerators, attached bathrooms with bath tubs. (These villas are classified as Deluxe, Classic, Royal and Maharaja according to the facilities provided in each villa) (b). Swimming pool, Tennis and badminton courts, Indoor recreation and card room. (c). Internet and personal laundry services. (d). Billiards room and facilities for pedicure and manicure. (e). Exotic herbs and vegetable .....

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dial phones,refrigerators, swimming pool, tennis court, badminton courts, card rooms, billiard rooms, conference hall, art gallery, services of astrologer and palmist, pedicure and manicure facilities, cultural programmes and sightseeing tours etc, are special features associated with the amenities and services provided in a hotel and health resorts rather than that of a hospital. It is seen that these facilities amenities and services were provided by the assessee to satisfy the customers who a .....

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ment with no intention for treatment for any disease but to enjoy holidays. 14. The impugned order shows that the Tribunal has accepted the fact that Ayrvedic treatment is also provided in the establishment. However, Tribunal found that the Hospital is a place intended to cure the patients and a patient is a person suffering from a disease or disorder. Tribunal further found that as per the records in the establishment, guests or customers frequented the place for holidays, leisure and recreatio .....

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is also functioning within a health resort for providing Ayurvedic treatment. 16. Tribunal found that different tariff is fixed for accommodation with single occupancy and double occupancy, which is not the practice in a Hospital. Tribunal also found that the charges for each Ayurvedic package is pre-fixed depending on the type of accommodation opted by the guests, and that in a Hospital, the final bill depended upon the treatment received by the patient, cost of medicines, charges for clinical .....

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registration cards and found that in the 'House Rules' the establishment has been described as a 'Hotel' and the inmates as 'guests'. From the brochures perused, it was found that the petitioner provided trekking and hiking programmes, sightseeing programmes etc., and that there was no condition for accommodation that the inmates should undergo any treatment. Tribunal also found that the conference hall in the petitioner's establishment was let out on rent. Certain bi .....

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pted for. Tribunal has given the details of the charges collected and found that the lion portion of the package is related to the room rent alone. 19 Section 2(e) defines 'hotel' as a building or part of a building where residential accommodation by way of business is provided for monetary consideration and includes a lodging house. The expressing luxury provided in a hotel is defined in Section 2(f) of the Act to mean accommodation for residence or use and other amenities and services, .....

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