TaxTMI 
TaxTMI 
2016 (6) TMI 704
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....21.9.2015 passed by the Deputy Collector, Vadodara, under which he has raised the differential tax liability of Rs. 2,19,108/- to be recovered with interest. 2. Brief facts are as under: Petitioner no.1 is a company registered under The Companies Act. Petitioner no. 2 is its Chairman and Managing Director. The petitioner company is engaged in the business of running a hotel by the name of Hotel Surya at Vadodara. The petitioner is subjected to luxury tax payable under The Gujarat Luxuries (Hotels and Lodging Houses) Tax, 1977 ("the Act" for short). Section 3 of the Act provides for levy and collection of tax and prescribes the rate at which such tax should be levied and for the said purpose, prescribes three categories of rooms in hot....
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.... as the apprehension on the part of the petitioners that interpretation made by the authority as per impugned communication dated 30.5.2013 will come in the way of the petitioners in future is concerned, it is observed that as and when any return is submitted by the petitioners in future as provided under section 5 of the Act, the same are bound to be assessed by the appropriate authority/Collector, Vadodara in accordance with section 6 of the Act and if the petitioners are aggrieved, they can prefer an appeal and thereafter initiate further proceedings. However, it is observed that the future assessment shall be considered in accordance with the prevailing law." 5. Once again when the authorities went on pressing for demand of higher ta....
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.... have completely avoided giving any interpretation to the provisions contained in section 3 of the Act. The Assessing Officer has not taken into consideration the petitioners' contentions. Even the higher authority has refused to go into correctness of the petitioners' interpretation as can be seen from the earlier orders passed by the said authority. The petitioners are therefore, compelled to challenge the order of assessment directly before High Court. Learned Assistant Government Pleader opposed the petition contending that the tax demand raised by the authorities is according to the provisions contained in the Act. 8. In the context of interpretation of section 3 of the Act, it would be necessary to take notice of the statut....
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....yable under the category at serial No.3 of the Table below sub-section(1) of section 3, allow such proprietor on such conditions as the Collector may impose, to pay the consolidated tax in respect of such hotel at the rate of 8 per cent, on the basis of 50 per cent occupancy as per the declared tariff." 10. A proprietor liable to pay tax under the Act is required to furnish return as provided under section 5 of the Act. Section 6 pertains to assessment and collection of tax. Under sub-section (1) of section 6, if the Collector is satisfied that the return furnished under sub-section (1) of section 5 is complete and he has no reason to believe that it is incorrect, he would assess the amount of tax due from the proprietor on the basis of ....
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....e two options. As per clause (a) he would pay 8 per cent tax on consolidated payment on the basis of 50 per cent occupancy as per average declared tariff. If however, he does not wish to be governed by this consolidated payment regime, he may opt for clause (b) in which case he would be taxed at the rate of 12.5 per cent on payment made on the basis of actual occupancy as per declared tariff. 13. It can thus be seen that the terms "occupancy" and "actual occupancy" have been used in the same provision and must therefore, carry different connotations. Through interpretation process, we cannot interpret the term "occupancy" to carry the same meaning as "actual occupancy". When Legislature has thus, used expression "occupancy" in clause (a)....