Court : Karnataka
Reported in : ILR2009KAR2830; (2010)27VST489(Karn)
..... in the writ petitions, the petitioners sought to declare the amendments made to section 2(4) of the karnataka tax on luxuries act, 1979 (hereinafter referred to as 'the act') by act no. ..... pursuant to the amendment to the provision of section 2(4) and inserting explanation clause, notices were issued to the clubs under section 2 of the act read with rule 2-b(3) of the luxury tax rules 1979 calling upon them to file applications for registration in the department of commercial taxes. ..... shall not be made to re-write the statutory provisions by giving explanation to such provision, that would defeat the object and purpose for which words and phrases that are used by the state legislature in the definition clause of hotel under section 2(4) of the act that being so, the learned single judge has committed an error in law in holding at the end of paragraph 30 as under:the question whether the explanation should further be watered down or read down to be, as one ..... being aggrieved by the same, the appellants herein and others filed writ petitions before this court seeking to declare the inclusion of clubs in the definition of 'hotel' and the explanation are unconstitutional and beyond the powers of the state government and therefore requested to quash the notices and prayed to grant other reliefs. ..... 5 of 2000 as unconstitutional and beyond the powers of the state government.2. .....
Tag this Judgment!Court : Karnataka
Reported in : 2008(5)KCCRSN654; 2009(1)AIRKarR190; AIR2009NOC807
..... petitioner-clubs are before this court challenging the constitutional validity of the levy of what is known as 'luxury tax' under the provisions of the karnataka tax on luxuries act, 1979 (for short the act') and in particular as levied under section 3-d of the act which had been introduced into the parent act by an amendment in terms of karnataka act no. ..... the assistant commissioner of commercial taxes 2003(54) kar lj 208 and submits that the scope of charging section cannot be restricted to either the definition in a taxing statute or on entries in the schedule, that the charging section can operate independent of either and if section 3-d of the act complies the charge in respect of levy of tax on luxuries, that by itself is sufficient and therefore the definition section being at variance for the purpose of understanding the meaning of luxuries will not in any way detract from the levy of luxury tax under section 3-d of the act. ..... if the idea of 'luxuries' is required to be so wide as to comprehend in it, every aspect which can fairly and reasonably be said to be embraced by it, then, the taxing power cannot be limited to or conditioned in the manner suggested. ..... the contention, in substance, is that the means of providing luxury, by itself, does not provide the nexus between the taxing power and the subject of tax and there must be an actual, and not merely a notional or potential, consumption or utilisation of the luxury. .....
Tag this Judgment!Court : Karnataka
Reported in : (2007)5VST292(Karn)
..... 1063 of 2003), which reads as under:this honourable high court may be pleased to declare and strike down the explanation which has been appended to section 2(4) of the karnataka tax on luxuries act, 1979, which was introduced by karnataka act no. ..... assistant commissioner of commercial taxes, district circle 1, mysore reported in [2006] 146 stc 473 (karn) : [2003] 54 klj 208, submits that the levy of luxury tax on persons and institutions like marriage halls has been upheld and the division bench while examining the scope of such levy, has opined that the legislature enjoys a wide and unfettered freedom in choosing the subject for tax; that so long as there is some reasonable basis for the classification made by the legislature, the ..... the prayer in these writ petitions is to declare and strike down the amendment made to section 2(4) of the act and the explanation appended thereto in terms of the karnataka act 5 of 2000, as constitutionally void and unenforceable, being a colourable piece of legislation, encroaching upon the judicial powers of the high court and violative of articles 14, 19, 265, 301 and 304(b) of the constitution of india. .....
Tag this Judgment!Court : Karnataka
Reported in : ILR2003KAR4072; [2004]134STC337(Kar)
..... the said notification reads as under: 'in exercise of the powers conferred by section 12-a of the karnataka tax on luxuries act, 1979 (karnataka act 22 of 1979), the government of karnataka being of the opinion that it is necessary in the public interest so to do, hereby exempts with immediate effect the tax payable under the said act by a stockist on his turnover of stock of silk fabrics'. 9. ..... petitioners state in these petitions that the act was initially enacted to levy tax on commodities like cigarettes and the luxuries provided in a hotel. ..... in so far as annexure-a is concerned, learned counsel invites my attention to section 5a to contend that the payment is to be made in advance and monthly statement is required to be shown by the parties. ..... they say that the argument of unconstitutional levy has no foundation and silk fabric is a luxury as understood in law. ..... in the light of the object of the notification and provisions of the act the intention cannot but to give exemption from 1.4.2001. ..... as i mentioned earlier turnover stock in terms of the act is in relation to a stockist in respect of any year and year means commencing from the first day of april. ..... in the body of the petition, petitioners have stated that silk fabric is not a luxurious commodity and it is a necessary commodity in the ordinary course of life of an indian. ..... he refers to me the constitutional entry governing this field and also the provisions of law to contend that the levy is unconstitutional. .....
Tag this Judgment!Court : Chennai
Reported in : (2009)22VST59(Mad)
..... by the definition of 'hotel' under the karnataka tax on luxuries (hotels and lodging houses) act, 1979, the term cannot be interpreted to include every building where lodging accommodation is provided. ..... in that decision, the karnataka high court was concerned with the similar provisions found in karnataka tax on luxuries act. ..... definitions found under the luxuries act:section 2(f) defines 'hotel' which is as follows:'hotel' means a building or part of a building where residential accommodation with or without board is by way of business provided for a monetary consideration and includes a lodging house.section 2(fff) defines 'luxury' which is as follows:'luxury' means luxury provided in hotel or any tobacco product supplied by a tobacconist or the scheduled commodity which is for enjoyment over and above the necessities of life.section 2(g) defines 'luxury provided in a hotel', which is as follows:'luxury provided in a hotel' means accommodation ..... in one writ petition, the order passed by the revisional authority confirming the appellate order upholding the assessment was also under challenge.2. ..... assistant commissioner of luxury taxes. .....
Tag this Judgment!Court : Karnataka
Reported in : AIR2000Kant33; [1999]114STC92(Kar)
..... controversy is with regard to the validity of section 2(1) of the karnataka tax on luxuries act, 1979 for levying tax in respect of telephone charges which are alleged to be unreasonable, arbitrary, and in violation of articles 14, 19(1)(g), 245, 246 and 300a of the constitution of india. ..... is contended by the learned counsel for the petitioner that tax on telephone charges was not collected earlier because of a circular issued by the commissioner on 15-2-1983 by which it was made clear that no tax is leviable on telephone charges as telephone charges are not charges for lodging and the department has not taken any action till 1996-97.3. ..... point which require consideration by this court is that in the circular dated 15-2-1983 issued by the commissioner it was considered that the telephone call charges are not charges for lodging and are therefore not liable for luxury tax. ..... behalf of the respondents it is stated that under section 2-a commissioner has power to give instructions which are to be followed by the authorities and that telephone charges are included in the definition 'luxury provided in a hotel' and that this court in w.p. no. ..... in these circumstances, it cannot be said that the power is an uncanalised power and is an arbitrary or unreasonable one, there are statutory guides governing its exercise and the guidelines are governed by well-settled principles of ..... was held in the aforesaid case as under :there are in-built checks on the power under explanation to section 2(a). .....
Tag this Judgment!Court : Karnataka
Reported in : ILR2002KAR4170; [2003]130STC276(Kar)
..... 3 and corresponding entries inserted in the schedule to the karnataka tax on luxuries act, 1979 (hereinafter referred to as 'the ktl act') prescribing levy of luxury tax on gutka at 20 per cent by karnataka act no. ..... firstly, on the ground that the prohibition placed under section 15 of the cst act being only with regard to the levy of sales tax at the rate of 4 per cent and at a time, and in the instant case, the levy being a luxury tax imposed by the state in exercise of the power conferred on it under entry 62 of list ii, the prohibition contained in section 15 of the cst act cannot have any application. ..... firstly, he pointed out that the prohibition placed under section 15 of the cst act being only with regard to the levy of sales tax above the rate of 4 per cent and in the instant case the levy is one of luxury tax by the state in exercise of power conferred on it under entry 62 of list ii, the prohibition contained in section 15 of the cst act cannot have any application. ..... it is also necessary to point out that there is no merit in the submission of the learned counsel appearing for the petitioners that since section 17-a of the ktl act provides for recognition of section 28-a of the kst act for the purpose of the ktl act, with a view evasion of tax under the luxury tax coupled with the power to levy luxury tax amounts to interference in freedom of trade, commerce and intercourse guaranteed to the petitioners under article 310 of the constitution of india. .....
Tag this Judgment!Court : Karnataka
Reported in : ILR2008KAR565; (2009)20VST642(Karn); 2008(2)AIRKarR248; AIR2008NOC1270.
..... the writ jurisdiction of this court.petitioner is an artificial person - a company registered under the companies act, 1956, and who claims to be a dealer registered under the provisions of the karnataka sales tax act, 1957 [for short, kst act] and karnataka tax on luxuries act, 1979 [for short, ktl act] who has come up with prayers which on the face of it may not be achievable, with inadequate pleadings to support the prayers and on irrelevant grounds urged in support of the writ petition.2. this writ petition is in the context of ..... such circumstance, the secretary to government, finance department and the commissioner of commercial taxes in karnataka, are directed to cause a proper enquiry into such state of affairs particularly to ascertain who are the officers/officials of the department who are responsible for not realizing the tax due from the petitioner for the years 2002-03 and 2003-04 and even upto date and as to their conduct in not realizing the amount due to the state and take commensurate action, if it is found that ..... had been issued; that the petitioner had paid tax up to this year, but for the financial year 2003-04 and 2004-05, though the petitioner had filed monthly returns and had admitted the liability for payment of tax and collected tax, had not paid the entire admitted tax in terms of the returns filed under section 12b of the kst act and it is for the recovery of such amounts, proceedings had been initiated and the serving of garnishee notices on the .....
Tag this Judgment!Court : Supreme Court of India
Reported in : JT2007(5)SC311; 2007(5)SCALE429; 2007(1)LC0515(SC); (2007)6VST783(SC); 2007AIRSCW3071; JT2007(5)SC311; 2007-08(6)VATToday128; 2007(2)KCCRSN81; 2007(4)AIRKarR295
..... dated 30.03.96 as per the karnataka taxation laws (second amendment) act, 1996, amendments are effected to provisions of the below mentioned acts; i) karnataka tax on luxuries act, 1979. ..... revisional powers of joint commissioners ..... authorisation by the commissioner of sales tax and completion of assessment or reassessment under sub-section (1) of section 21 have to be completed within 8 years of ..... we do not think that sub-section (2) and the proviso added to it leave anyone in doubt that as on the date when the proviso came into force, the commissioner of sales tax could authorise making of assessment or reassessment before the expiration of 8 years from the end of ..... levy of tax on the transfer of the right to use any goods: notwithstanding anything contained in sub-section (1) or sub-section (3) of section 5, but subject to sub-sections (5) and (6) of the said section, every dealer shall pay for each year a tax under this act on his (taxable turnover in respect of the transfer of the right to use any goods mentioned in column (2) of the seventh schedule for any purpose (whether or not for a specified period) at the rates specified ..... 12 april, 1996, while explaining the salient features of the amendments effected to the provisions of karnataka sales tax act, 1957 by karnataka taxation laws (second amendment) act, 1996 at paras 16 and 17, the position of law relating to section 5c of the karnataka sales tax act, 1957 as amended by the said amendment act was stated to be as follows: 16. .....
Tag this Judgment!Court : Karnataka
Reported in : [2003]129STC373(Kar)
..... karnataka tax on luxuries act, 1979 (hereinafter referred to as 'the act') makes provision for a levy on luxury provided in a hotel under section 3 of the act.3 ..... (2) all officers and persons employed in the execution of this act, shall observe and follow such administrative instructions as may be issued to them for their guidance by the joint commissioner within whose jurisdiction they perform their ..... we are only concerned with section 3 (which is the charging section) which deals with tax on luxury provided in a hotel in respect of ..... --(1) the state government or the commissioner may, from time to time, issue such orders, instructions and directions to all officers and persons employed in the execution of this act as they may deem fit for the administration of this act, and all such officers and persons shall observe and follow such orders, instructions and directions of the state government and the commissioner :provided that no such orders, instructions, or directions shall be issued so as to interfere with the discretion of any appellate authority in the exercise ..... is nobody's case that the circular was outside the purview of the power of the commissioner to issue such circular. ..... the supreme court while dealing the power under article 226 in the case of chandigarh administration ..... single judge also recognises that the circular was in force but suo motu by exercising powers under article 226 of the constitution quashed the circular as being contrary to the provisions of the act.19. .....
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