Hospital luxury tax on air-conditioned and television-equipped accommodation upheld as a valid statutory levy.

The amended definition of "luxury provided in a hospital" under the Assam Tax on Luxuries (Hotels and Lodging Houses and Hospitals) Act, 1989 was read to include hospital accommodation supplied with air-conditioning, television, radio and similar connected services. Applying the principle that a taxable luxury must be something costly beyond the ordinary necessities of life, the court treated such facilities in private hospitals as falling within the statutory concept of luxury. The levy on turnover of receipts for those amenities was therefore upheld as within the State's taxing competence, and the challenge to the tax failed.

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Issues: Whether the amended definition of "luxury provided in a hospital" and the levy of luxury tax on hospital accommodation with facilities such as air-conditioning and television were valid.

Analysis: The amended definition in section 2(7A) of the Assam Tax on Luxuries (Hotels and Lodging Houses and Hospitals) Act, 1989 specifically brings within the tax net accommodation in a hospital supplied with air-conditioning, television, radio, or other connected services. The charging provision in section 3A levies tax on turnover of receipts in respect of such luxuries provided in a hospital. Applying the test of luxury drawn from the cited Supreme Court principles, the facility must be something costly and beyond the necessary requirements of an average member of society. On that basis, the Court found that such facilities in private hospitals fall within the legislative concept of luxury and are taxable.

Conclusion: The levy was held to be valid and the challenge to the tax failed.

Final Conclusion: The writ petitions were dismissed because the hospital facilities covered by the amended definition were held to constitute taxable luxuries within the State's competence.

Ratio Decidendi: Where hospital accommodation includes facilities such as air-conditioning and television, the State may treat the accommodation as a taxable luxury if the statutory definition expressly covers such amenities and the facility is beyond the ordinary necessities of life.

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