Court : Andhra Pradesh
Reported in : (1995)123CTR(AP)576; [1995]213ITR668(AP)
..... of the amendments made to sections 2 - 5, 7 and 15 of the expenditure tax act, 1987 (for short, 'the act'), by the finance (no. ..... the arguments of sri moorthy and sri man mohan that air-conditioned restaurants are necessary even for ordinary people in order to enjoy the facility of pollution-free atmosphere and if expenditure-tax is levied the persons who would otherwise enjoy that facility would be deprived of it and as the right to live guaranteed under article 21 includes the right to live with dignity and comfort, the impugned legislation is ..... the act of 1987, as it stood prior to the amendment act of 1991, was enacted to provide for the levy of a tax on expenditure incurred in ..... to the amendment in question such type of expenditure was brought to tax under the principal act of 1987. ..... on three grounds the act was attacked : (i) in its true nature and character, it is not an act relating to expenditure-tax, but in pith and substance, it is a tax on luxuries falling within entry 62 of list ii of the seventh schedule or a tax envisaged in entry 54 of list ii and, therefore, clearly outside the legislative competency of the ..... 14175 of 1991, that the petitioner therein was unjustly sought to be burdened with expenditure-tax even though he consumed food in the non-air-conditioned section of the air-conditioned hotel ..... stretch of reasoning can it be said that in our society air-conditioned restaurants but for the expenditure tax would have been within the reach of ordinary people. .....
Tag this Judgment!Court : Himachal Pradesh
Reported in : [1999]238ITR38(HP)
..... for an appropriate writ and declaration that section 5 of the expenditure-tax act, 1987, central act 35 of 1987, hereinafter referred to as 'the act', which defines the words 'chargeable expenditure' beyond the scope of section 3, the charging section in so far as it attempts to bring into its ambit the expenses and the rooms which otherwise fall beyond the purview and applicability of the act to be illegal, arbitrary, unjust and beyond the scope of the act and any assessment orders passed or proceeding initiated thereunder ..... the expenditure-tax act, 1987, was enacted to provide for the levy of a tax on expenditure incurred in certain hotels or restaurants and for matters connected therewith or incidental thereto. ..... the main issue on which the parties on either side are at serious loggerheads is the interpretation that has to be placed on section 3 of the expenditure-tax act, 1987, which renders the act applicable to any chargeable expenditure. ..... the constitutional validity of the expenditure-tax act, 1987, came to be challenged before the apex court and in the decision reported in federation of hotel and restaurant association of india v. ..... the construction sought to be placed by the revenue if countenanced also in our view will virtually abolish and obliterate even the differences underlying the purpose of the expenditure-tax act, 1987, and the objects of the hotel receipts act, 1980.22. .....
Tag this Judgment!Court : Supreme Court of India
Reported in : AIR1990SC1637; (1989)77CTR(SC)141; [1989]178ITR97(SC); (1989)3SCC634; [1989]2SCR918; [1989]74STC102(SC); 1990(1)LC157(SC)
..... act was, however, short-lived; it was only a 'lull before the storm' which descended on all hoteliers in the form of the expenditure tax act, 1987 (hereinafter referred to as 'the 1987 act ..... who are engaged in, or associated with, the hotel industry in india challenge the constitutional validity of the expenditure-tax act, 1987 (central act 35 of 1987). ..... unnecessary for the present)the expression 'assessee', 'hotel', 'room-charges' are some of the material expressions defined in the interpretation clause.2(1) 'assessee' means a person responsible for collecting the expenditure-tax payable under the provisions of this act.2(6) 'hotel' includes a building or part of a building where residential accommodation is, by way of business, provided for a monetary consideration.2(10) 'room charges' means the charges for a unit ..... act was issued on 14.10.1987 appointing 1.11.1987 as the date on which the act shall come into force.the expenditure tax ..... tax levied by the 1987 act is not, in fact and in truth, an expenditure tax ..... 1987 act seeks to tax only the expenditure on items which can be described as luxuries is, however, used by sri palkiwala to support his other contention (which has really troubled me considerably) that the pith and substance of both sets of legislations is the same, that they both impose a tax only on luxuries on entertainments and that the distinction sought to be made on behalf of the revenue that one is a tax on 'luxuries' while the other is a tax on the expenditure .....
Tag this Judgment!Court : Andhra Pradesh
Reported in : (2005)186CTR(AP)451; 2005(185)ELT236(AP); 2006[3]STR565
..... challenge in this case was to the expenditure tax act, 1987, which envisaged a tax at 10% ad volerm on chargeable expenditure incurred in the class of hotels wherein room charges for any unit of residential accommodation were rs. ..... if a general expenditure tax act, like that of 1957, had been enacted, no challenge to its validity could have been raised because it incidentally levied the tax on expenditure incurred on luxuries. ..... the object of an expenditure tax - and, that, conceptually, there can be an expenditure tax is borne out by azam jah's case : [1972]83itr92(sc) (supra) is to discourage expenditure which the legislature considers lavish or ostentatious. ..... in the light of the above entries and decisions, i think that the learned attorney general is right in urging that, merely because the 1987 act as well as the state acts levy taxes which have ultimate impact on persons who enjoy certain luxuries, the pith and substance of both cannot be considered to be the same. ..... for instance, if the conflict alleged had been between the present state acts and an act of parliament taxing expenditure incurred in the construction of theatres or the maintenance of race horse establishments or the like, there would have been no overlapping at all and the pith and substance of the central tax could well be described as 'expenditure' and not 'luxuries'. .....
Tag this Judgment!Court : Delhi
Reported in : 39(1989)DLT463; [1989]180ITR643(Delhi); 1989RLR493
..... the grievance of the petitioners is that on the money which is paid by them to the hotels in respect of the accommodation which is used by the petitioners no tax is payable under the provisions of the expenditure tax act, 1987. ..... however, the petitioners, like other taxes such as sales tax, may be at liberty to pass on the incidence of the expenditure tax to their customers, but we express no final opinion on this because what we are really called upon to do in this case is to interpret section 5 and other relevant provisions of the act. ..... the submission was that the petitioners should be at liberty to pass on to their customers the expenditure tax which is levied on the petitioners in respect of the hire money or the license money which they pay. ..... '(6) the other relevant provision is section 7, which pertains to collection and recovery of expenditure tax. ..... (ii) any expenditure incurred by persons within the purposes ' view of the vienna convention on diplomatic relations, 1961, or the vienna convention on consular relations, 1963; (iii) any expenditure incurred in any shop or in any office which is not owned or managed by the person who carries on the business of hotel; 465 (iv)any expenditure by way of any tax,including tax under this act. ..... (9) it was then contended by the learned counsel for the petitioners that no tax is livable in respect of any expenditure which is incurred in any shop, provided that shop is not owned or managed by the hotel. .....
Tag this Judgment!Court : Chennai
Reported in : 2001(134)ELT618(Mad); 2006[2]STR411; [2007]6STT49
..... the impugned act was 'expenditure tax act, 1987' which envisaged a tax at 10% ad valorem on the chargeable expenditure incurred in the class of hetels wherein the room charges for any unit of residential accommodation are four hundred rupees or ..... the challenge was on the ground that this tax, which was being imposed under entry 97 of list-i under article 248 of the constitution of india was beyond the legislative competence as in fact, this expenditure tax was squarely covered under entry 62 of list-ii which pertained to the taxes on luxuries, including taxes on entertainments, amusements, betting and gambling and also could be covered under entry 54 of list-ii as the transaction in question also amounted to 'sale of food stuff ..... following observations in paragraph 19 are apposite :'the submissions of the learned attorney general that the tax is essentially a tax on expenditure and not on luxuries or sale of goods falling within the state power, must, in our ..... say that the nature of a tax is of a compensatory and regulatory nature is not to say that the measure of the tax should be proportionate to the expenditure incurred on the regulation provided and ..... the term 'chargeable expenditure' was defined by section 5 of that act and included the expenditure incurred in or payments made in such class of hotels in connection with the provisions of any accommodation, residential or otherwise; or food or drink by the hotel, whether at the hotel or outside, or by any other person at the hotel .....
Tag this Judgment!Court : Gujarat
Reported in : 2001(74)ECC51; 2005(179)ELT129(Guj); (2001)4GLR3630; 2006[2]STR300; [2007]7STT29
..... in this case, the challenge was to the levy of tax under the expenditure-tax act, 1987, enacted by parliament. ..... in the case of federation of hotel and restaurant : [1989]178itr97(sc) , the court observed that the basis of classification under the expenditure-tax act cannot be said to be arbitrary or unintelligible nor as being without a rational nexus with the object of the law. ..... hence, the expenditure tax and tax on the sale of goods were covered by the entries in the state list; there was nothing left for parliament to tax. 62. ..... in this case, the office of a chartered architect was sought to be brought within the purview of the madras shops and establishments act and the court upheld the contention of the chartered architect that the tax was meant to cover shops and establishment which are associated with the carrying on of trade or commerce and cannot take in establishments where professional services are rendered. ..... n this case, what was challenged was the notification of the punjab government under the punjab municipal act levying tax on every person carrying on a trade, profession, calling or employment in the area subject to the authority of the municipal committee. ..... the act envisages a tax at 10 per cent, ad valorem on 'chargeable expenditure' incurred in the class of hotels wherein 'room charges' for any unit of residential accommodation are over rs. .....
Tag this Judgment!Court : Andhra Pradesh
Reported in : AIR1997AP85; 1996(4)ALT334
..... union of india white upholding the legislative competence in enacting the expenditure tax act, 1987, the supreme court, as regards the classification made by the legislature, held that the legislatures have very wide discretion in selection of persons, subject-matters, events, etc. ..... dealing with the contention that sections 2, 3,4 and 5 of the expenditure tax act, 1987 are violative of art. ..... sathe, air 1937 bom 493, the interpretation of the word 'used' occurring in sub-clause (iv) of section 10(2) of the income-tax act, 1922 fell for consideration of a division bench of bombay high court and the division bench while construing the word 'used' observed:'but that does not dispose of the question whether, when machinery is kept ..... in that case, the supreme court considering section 4 and the schedule to the kerala buildings tax act held that the equality clause of the constitution is violated and, therefore, the same is ultra vires. ..... state of kerala : [1980]1scr804 , the method of valuation of buildings for purposes of levying tax under the kerala buildings tax act, 197s came up for consideration of a constitution bench of the supreme court. .....
Tag this Judgment!Court : Chennai
Reported in : 2006(197)ELT476(Mad)
..... reads as follows:-'87(h) 'direct tax enactment' means the wealth tax act, 1957 (27 of 1957) or the gift tax act, 1958 (18 or 1958) or the income tax act, 1961 (43 of 1961) or the interest tax act, 1974 (45 of 1974) or the expenditure tax act, 1987 (35 of 1987)'.section 87(j) of kvss, 1998 defines 'indirect tax enactment', which reads as follows:'87(j) 'indirect tax enactment' means the customs act,1962 (52 of 1962) or the central excise act,1944 (1 of 1944) or the customs tariff act,1975 (51 of 1975) or the central excise tariff act,1985 (5 of 1986) or the relevant act and includes the rules ..... person in respect of whom prosecution for any offence punishable under chapter ix or chapter xvii of the indian penal code (45 of 1860), the foreign exchange regulation act, 1973 (46 of 1973), the narcotic drugs and psychotropic substances act, 1985 (61 of 1985), the terrorist and disruptive activities (prevention) act, 1987 (28 of 1987), the prevention of corruption act, 1988 (49 of 1988), or for the purpose of enforcement of any civil liability has been instituted on or before the filing of the declaration or such person has .....
Tag this Judgment!Court : Supreme Court of India
Reported in : (2007)210CTR(SC)86; [2008]296ITR8(SC); 2007(3)KLT408(SC); 2007(7)SCALE1; (2007)5SCC416; (2007)7VST355(SC); 2007AIRSCW3165
..... 87(h) and 87(j) of the scheme, which read as under:(h) 'direct tax enactment' means the wealth-tax act, 1957 (27 of 1957) or the gift-tax act, 1958 (18 of 1958) or the income-tax act, 1961 (43 of 1961) or the interest-tax act, 1974 (45 of 1974) or the expenditure - tax act, 1987 (35 of 1987);(j) 'indirect tax enactment' means the customs act, 1962 (52 of 1962) or the central excise act, 1944 (1 of 1944) or the customs tariff act, 1975 (51 of 1975) or the central excise tariff act, 1985 (5 of 1986) or the relevant act and includes the rules or regulations made under such ..... the appellant in the course of the declarations filed specifically stated that any adjustment of refunds towards tax arrears of the appellant by the department in the earlier years without following the mandatory procedure of section 245 of the act would still remain as tax arrears for the purpose of kvss and it is on that basis the declarations were accepted by the ..... an order dated 15.01.2007, this court observed:the question which inter alia arises for consideration in this petition is as to whether by reason of sub-section (3) of section 90 of the kar vivadh samadhan scheme, 1998, as contained in the finance act, 1998, the state legislation relating to the imposition of the sales tax by re-opening an assessment under the state sales tax laws shall be affected or not, having regard to article 246 of the constitution of india. ..... is registered under the kerala general sales tax act, 1963 (for short 'the act'). .....
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