Broad hotel luxury tax scope includes optional customer services like treatment, laundry and boating arrangements.

The Kerala Tax on Luxuries Act, 1976 treats "luxury provided in a hotel" as a broad composite concept covering accommodation and other amenities or services provided to hotel customers, subject only to express statutory exclusions. The taxable value is based on the total charges recovered, so optional services need not be intrinsic to the room or uniformly attached to every stay. Services arranged by the hotel for customers, even outside the hotel premises and even if separately charged, are not excluded merely on that basis. Charges for ayurvedic treatment, laundry and boating arrangements are therefore includible in the taxable luxury provided in a hotel.

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Issues: Whether charges for ayurvedic treatment, laundry services and boating arrangements provided to hotel customers are includible in the taxable value of "luxury provided in a hotel" under the Kerala Tax on Luxuries Act, 1976.

Analysis: The definition of "luxury" in section 2(ee) is wide and covers any commodity or service that ministers comfort or pleasure. The definition of "luxury provided in a hotel" in section 2(f) takes in accommodation for residence and other amenities and services provided in a hotel, subject only to the statutory exclusions. Read with section 4(2), the levy is based on the total charges recovered, and the provision does not confine tax only to services intrinsically connected with the room or to amenities uniformly attached to every accommodation. Optional services, and services arranged by the hotel for its customers even outside the hotel premises, are not excluded merely because they are separately charged or depend on customer demand.

Conclusion: The charges collected for ayurvedic treatment, laundry and boating arrangements are includible in the taxable luxury provided in a hotel, and the challenge to their levy fails.

Ratio Decidendi: Under the Kerala Tax on Luxuries Act, 1976, the expression "luxury provided in a hotel" is a broad composite concept that includes all amenities and services provided to hotel customers which minister comfort or pleasure, unless expressly excluded by the statute.

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