Quality Airport Hotels and Flight Services (P) Ltd. vs The Commercial Tax Officer (WC and LT), Office of The Deputy Commissioner Dept. of Commercial Taxes, The Inspecting Assistant Commissioner and The State of Kerala

V. Chitambaresh, J.—Section 4(2)(c) of the Kerala Tax on Luxuries Act, 1976 (''the Act'' for short) as it earlier stood reads as follows.

In respect of a convention centre, hall, Kalyanamandapam, Auditorium including those attached to hotels, clubs or places of the like nature for the charges of accommodation, amenities and services provided excluding food and beverages at the rate 15%.

Clause c was substituted by the Kerala Finance Act, 2007 with effect from 1-4-2007 and the amended provisions of Section 4(2)(c) of the Act reads as follows:

[(c) in respect of a convention centre, hall, kalyanamandapam, auditorium including those attached to hotels, clubs or places of the like nature, for the charges for accommodation, amenities and services provided excluding food and beverages,-

(i) at the rate of ten per cent where the gross charges of accommodation and other amenities and services provided is above rupees three thousand and up to rupees ten thousand per day;

(ii) at the rate of fifteen per cent where the gross charges of accommodation and other amenities and services provided is above rupees ten thousand and up to rupees twenty thousand per day;

(iii) at the rate of twenty per cent where the gross charges of accommodation and other amenities and services provided is above rupees twenty thousand per day]

Section 4(2B) of the Act as it earlier stood reads as follows:

(2B) The luxury tax payable in respect of hall, auditorium, Kalyanamandapam or place of the like nature under sub-section (1) shall be at the following rates, of such charges received on all amenities and services provided, but exclusive of charges for food, drink and telephone calls, namely:- Rent or other charges realized

But then Section 4(2B) was omitted by Act 22 of 2006 with effect from 1-7-2006.

Rule 3(C) of the Kerala Tax on Luxuries Rules, 1976 (''the Rules'' for short) reads as under.

["3C. Procedure for computation of rent or other charges realized for hall, auditorium, Kalyanamandapam and place of the like nature where such rent or other charges are not separately ascertainable.- Where the bills issued or the accounts maintained by the proprietor do not show the rent or other charges realized for the hall, auditorium, Kalyanamandapam or place of the like nature separately and the rent and other charges are merged with the charges realised for food, drink and telephone, twenty five per cent of the total charges realised shall be treated as the rent and other charges to which the provisions of sub section (2B) of Section 4 applies]

The same inserted with effect from 28-7-2006 refers to Section 4(2B) of the Act which stands omitted with effect from 1-7-2006. The period in question in the instant case is the assessment year 2006-07 and none of these amended provisions are seen adverted to. Ext. P1 order of assessment and Ext. P2 order imposing penalty following are passed without advertence to the amended and omitted provisions. Whether the petitioner is liable under the unamended Section 4(2)(c) or till 30-6-2006 u/s 4(2B) of the Act has to be determined afresh in the light of the observations above.

I therefore quash Exts. P1 and P2 orders as also Ext. P3 demand notice and remit the matter to the first respondent for denovo consideration. The first respondent shall complete the exercise with notice to the petitioner within a period of two months from the date of receipt of a copy of this judgment.

The writ petition is disposed of.