2018 (9) TMI 2143

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....ct to the levy of luxury tax on the ayurveda services provided, boat charges, taxi charges and laundry charges received from the guests of the hotel, being included in the total turnover for the purpose of applying the rate of tax on luxury as provided under the Act of 1976. 2. The Tribunal affirming the order of the First Appellate Authority found that the boat charges, taxi charges and ayurveda charges are not provided within the building in which there is accommodation provided. The levy on such charges, taken by the hotel from the guests in the hotel, was found to be not leviable to tax under the Act of 1976. The Tribunal also noticed Section 4(2), which was introduced later in the year 2007, to find that the above provision is clarifi....

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.... hotel' in S.2(f) means accommodation for residence and other amenities and services provided in a hotel. When these terms are taken together, the mere prescription that the rate would be per day per room cannot be held to mean that luxury tax is leviable only on rate of charges for accommodation for residence and other amenities and services attached to that room. This will give a restrictive construction for the term 'other amenities and services' and would pin down the luxury tax levy to be confined to the charges for accommodation and amenities and services which would be offered for enjoyment irrespective of the requirement of the customer concerned. In our view, that is not the manner in which the said provision stands. Th....

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.... amplifies to bring within its ambit all commodities or services that minister comfort or pleasure. Therefore, all amenities and services provided in a hotel as well as accommodation for residence amount to luxury for the purpose of S.2(ee) and would fall within the term 'luxury provided in a hotel' as defined in S.2(f) of the Act.  5. Hence, the learned single Judge has rightly concluded that all what the charging section says is that the rate of tax will have to be determined by taking into account the total charges recovered and tax will be payable only on such amount irrespective of whether rent, amenities and services are separately charged or not. The learned single Judge was justified in holding that the Act does not m....