Auditorium use and amenities can attract luxury tax where the statute treats such premises as luxury accommodation.

An auditorium let out for cultural programmes and other functions was treated as luxury accommodation under the Kerala Tax on Luxuries Act, 1976. The definition of luxury and the charging provisions were read together, and luxury was not confined to residential accommodation alone. Because the premises were rented for functions and amenities such as electricity and water were provided, the statutory conditions for levy were satisfied. The registration provisions for halls and auditoriums also supported the view that such premises fall within the Act. The challenge to the Act's applicability therefore failed.

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Issues: Whether an auditorium let out for cultural programmes and other functions falls within the definition of luxury under the Kerala Tax on Luxuries Act, 1976 and is liable to luxury tax.

Analysis: The provisions defining luxury and levying tax were read together. Luxury in an auditorium was treated as accommodation for use along with amenities and services, and not confined to residential accommodation alone. Since the auditorium was rented out for functions and amenities such as electricity and water were provided, the statutory ingredients for levy were satisfied. The registration provisions for halls and auditoriums also reinforced that such premises were intended to be covered by the Act.

Conclusion: The auditorium was held liable to luxury tax under the Act and the challenge to the applicability of the Act failed.

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