Club accommodation as a hotel under luxury tax law when residential rooms are let for consideration to members or guests.

Under the Kerala Tax on Luxuries Act, 1976, rooms and cottages in a club premises used to provide residential accommodation for monetary consideration can fall within the definition of a "hotel". The statutory language is not limited to establishments devoted exclusively to guest accommodation, and the fact that the occupants are members or their guests does not change the character of the activity. A separate levy on clubs under section 4(2A) was treated as creating additional liability, not as excluding liability otherwise attracted under section 4. On that basis, the club's rooms and cottages were held exigible to luxury tax.

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Issues: Whether rooms and cottages let out by a club to its members and guests constitute a "hotel" liable to luxury tax under the Kerala Tax on Luxuries Act, 1976.

Analysis: The Act levies luxury tax on accommodation provided in a hotel, and "hotel" is defined as a building or part of a building where residential accommodation is provided by way of business for monetary consideration. The definition is not confined to establishments engaged exclusively in guest accommodation, and the identity of the occupants as members or guests does not alter the character of the activity. On the statutory language, if a part of a club premises is used for providing residential accommodation for consideration in the course of the club's activities, it answers the description of a hotel for the purposes of the Act. The separate levy on clubs under section 4(2A) was held to create an additional liability and not to exclude the liability otherwise attracted under section 4.

Conclusion: The club's rooms and cottages are exigible to luxury tax under the Act, and the assessment orders were upheld.

Ratio Decidendi: For the Kerala Tax on Luxuries Act, 1976, any part of a club premises used to provide residential accommodation by way of business for monetary consideration is a hotel liable to luxury tax, irrespective of whether the occupants are members or their guests.

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