https://www.taxtmi.com/caselaws?id=164742 A club is materially different from a hotel under the Karnataka Tax on Luxuries Act, because a hotel involves lodging accommodation provided by way of business for monetary consideration, while a club operates on membership and social or recreational purposes without the same business character. An Explanation to the definition could not enlarge the substantive charging provision by deeming club accommodation to be a hotel, since an Explanation must clarify and harmonise with the main text, not override it. The retrospective extension of luxury tax liability was also impermissible because a taxing amendment that creates a new burden on past transactions is ordinarily prospective. The amendment was therefore held invalid, and clubs could not be treated as hotels for luxury tax. en-us Mon, 01 Dec 2008 00:00:00 +0530 Sat, 22 Nov 2014 12:35:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=164742 A club is materially different from a hotel under the Karnataka Tax on Luxuries Act, because a hotel involves lodging accommodation provided by way of business for monetary consideration, while a club operates on membership and social or recreational purposes without the same business character. An Explanation to the definition could not enlarge the substantive charging provision by deeming club accommodation to be a hotel, since an Explanation must clarify and harmonise with the main text, not override it. The retrospective extension of luxury tax liability was also impermissible because a taxing amendment that creates a new burden on past transactions is ordinarily prospective. The amendment was therefore held invalid, and clubs could not be treated as hotels for luxury tax. Case-Laws VAT and Sales Tax Mon, 01 Dec 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=164742