TaxTMI 
TaxTMI 
2016 (10) TMI 1185
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.... bar attached hotel. In terms with provisions of the Kerala Tax on Luxuries Act, 1976, the respondent is also under obligation to pay luxury tax levied in terms of Section 4 of the Act. The proceedings were taken by the assessing officer alleging escapement of turnover of service tax on the ground that during the period 2004-05 and 2005-06, certain service charges were collected, but tax was not paid. Service charges were collected from customers who were provided the facility to consume liquor in the rooms of the hotel. Accordingly, the assessment orders were passed as Ext.P1. Separate appeals were filed before the Deputy Commissioner who confirmed the demand. On the very same basis, the penalty proceedings were taken against the petitione....
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....ds as under:- [(2) Luxury Tax shall be levided and collected, (a) in respect of a hotel, for charges of accommodation for residence and other amenities and services provided in the hotel, excluding food and liquor,- Reference is also made to the definition of words 'hotel' and 'luxury' under Section 2(e) which reads as under: 2 (e) "hotel" means a building or part o of a building where residential accommodation is by way of business provided for a monetary consideration and includes a lodging house." 2(ee) ""luxury" means a commodity or service that ministers comfort or pleasure." 4. A bare reading of Section 4 (2) clarifies the above point. In respect of hotel, there is clear indication that luxury tax shall be levied....