Court : Karnataka
Reported in : ILR2009KAR2830; (2010)27VST489(Karn)
..... 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. ..... 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 ..... the learned counsel for the appellants, the following points that would arise for consideration of this court:a) whether the inclusion of 'club' in the definition of 'hotel' and insertion of explanation to section 2(4) of the act and giving the amended provision retrospective effect is legal, valid and correct?b) whether the order of learned single warrants interference?5. in order to answer the points, one has to compare hotel with ..... 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. ..... . therefore, to attract charging section under the act to levy luxury tax upon the members of the club, the ..... cannot be equated to hotel for the purpose o levying luxury tax under the act .....
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. ..... want of legislative competence on the premise that it is seeking to levy tax on a non-luxury as even in terms of the description or understanding the word luxury' by the supreme court in the case of godfrey phillips [supra), it has become necessary to examine the scope of the charging section, though in most of these writ petitions, no assessment orders are placed before the court, except in wp no 992 of 2006 and it is pointed out that with reference to the assessment order dated 17-10-2005 [copy at annexure-e to the writ ..... urged on behalf of the petitioners, the stand taken by the state government in its counter and orders passed by the authorities under the act to subject to tax, the petitioner-clubs on the premise that levy under section 3-d is on the basis of total number of members in the club irrespective of the actual contents of section 3-d is a clear wrong application and understanding of the provision and the assessment orders, if have been passed on such understanding, are required to be redone to bring them in conformity .....
Tag this Judgment!Court : Karnataka
Reported in : (2007)5VST292(Karn)
..... 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. ..... the karnataka tax on luxuries act, 1979 (for short, 'the act') is an enactment by the karnataka state legislature to augment the revenue to the state of karnataka, like any other taxing statutes is the subject-matter of several amendments as also challenges before the courts including the validity of the parent act ..... government pleader appearing on behalf of the respondents and defending the provisions very stoutly, submits that the levy and collection of tax on the luxury provided in a hotel was the subject-matter of challenge before the supreme court and the validity of such provisions including the validity of section 3, the charging section of the present act, has already been upheld by the supreme court in the case of express hotels private ltd. v. ..... january 13, 2003, while issuing rule, restricted the scrutiny in these writ petitions only to the validity of the legislative action and relegated the petitioners to pursue their statutory remedies under the act in respect of the assessment orders.4. ..... also sought for issue of a writ in the nature of certiorari, to quash the assessment orders that had been passed in respect of the petitioners for the years 1995-96 to 1998-99 and 2000-01 by applying the law as had been amended under the karnataka act no. .....
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 are before me challenging the constitutional validity of levy of tax on silk fabrics under section 4b of the karnataka tax on luxuries act ('the act' for short). ..... the act provides for tax on luxuries in terms of the charging section 4-b. ..... ' section 2(9) of the act defines turnover of stock on luxuries as under: 'turnover of stock of luxuries' in relation to a stockist, in respect of any year, means the aggregate of the value of stocks of luxuries. ..... definition of section 2(4-b) defines 'luxuries' as under: 'luxuries' means commodities or services specified in the schedule ministering to enjoyment, comfort or pleasure extraordinary to necessities of life. ..... 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. ..... they are also seeking for a declaration to declare that the notification dated 25.8.2001 issued by the first respondent under section 12-a of the act has the effect of exempting levy of tax on silk fabrics for the entire assessment year commencing from 1.4.2001. .....
Tag this Judgment!Court : Chennai
Reported in : (2009)22VST59(Mad)
..... in that decision, the karnataka high court was concerned with the similar provisions found in karnataka tax on luxuries act. ..... 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. ..... 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 ..... in other writ petitions, pre-assessment notices and notices calling upon the petitioner-clubs to register themselves under the luxuries act were also under challenge. ..... in one writ petition, the order passed by the revisional authority confirming the appellate order upholding the assessment was also under challenge.2. ..... the petitioners have challenged the final assessment orders in some writ petitions. .....
Tag this Judgment!Court : Karnataka
Reported in : AIR2000Kant33; [1999]114STC92(Kar)
..... the 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 ..... similar definition exists under karnataka tax on luxuries act, 1976 in section 2(1) definition 'charges for lodging ..... in the above case section 2(4) of gujarat tax on luxuries (hotels and lodging houses) act, 1977 were challenged which includes charges for air-conditioning, telephone, radio, music, extra beds and the ..... rupees per room per day; (ii) provision in hotels, whether to resident or others of such facility as health club, beauty parlour, swimming pools, conference hall and the like for which charges are separately made; section 3 is the charging section which provide tax on luxury provided in a hotel. ..... relevant provisions are as under : 'levy and collection of tax on luxury provided in a hotel : (1) subject to the provisions of this act, there shall be levied and collected a tax on the luxury provided in a hotel in respect of every room (to be known as 'luxury tax') at the following rates.' 2. ..... narayan, learned counsel, submits that luxuries have been defined under section 2(4)b(1) and in the schedule appended to the act only cigarette and tobacco products have been specified as luxuries, since telephone charges are not included and specified in the schedule no tax could be levied. 6. mr .....
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. ..... the petitioners in these batch of petitions are registered dealers under the provisions of the karnataka sales tax act, 1957 (hereinafter referred to as 'the kst act') and also under the provisions of the karnataka tax on entry of goods act, 1979 (hereinafter referred to as. ..... 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. ..... of gutka dispatched to places outside the state, the exemption that may be claimed by the stockiest being dependent upon the various circumstances like acceptability of the same by the assessing authority, and there being no certainty of refund of luxury tax paid because of the practice prevalent in the department to deny such refunds by invoking the theory of unjust enrichment, the stockiest in the state are placed in a great disadvantage than their counterparts in other states where there .....
Tag this Judgment!Court : Karnataka
Reported in : ILR2008KAR565; (2009)20VST642(Karn); 2008(2)AIRKarR248; AIR2008NOC1270.
..... this writ petition is a typical illustration of gross abuse of 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 ..... to get relief as prayed in the writ petition; that while it is a fact that the petitioner is a registered dealer under the provisions of the ktl act, central sales tax act, 1956 and kst act, the assessment in respect of the petitioner's tax liability under the enactments has been completed upto the year 2002-03 and such assessment orders have also been served on the petitioners; that follow up demand notices 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 .....
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
..... fd 4 crc 96 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. ..... (1-a) in making an assessment under sub-section (1) the assessing authority may, if it is satisfied that the escape from assessment is due to wilful non-disclosure of assessable turnover by the dealer, direct the dealer to pay, in addition to the tax assessed under sub-section (1), a penalty not exceeding (an amount equivalent to the tax due) the tax so assessed:provided that no penalty under this sub-section shall be imposed unless the dealer affected has had a reasonable opportunity of showing cause against such imposition. ..... turnover of a dealer in respect of any period has escaped assessment to tax or has been under-assessed or has been assessed at a rate lower than the rate at which it is assessable under this act or any deductions or exemptions have been wrongly allowed in respect thereof, the assessing authority may, notwithstanding the fact that the whole or part of such escaped turnover was already before the said authority at the time of the original assessment or re- assessment but subject to the provisions of sub-section (2), at any time within a period of eight .....
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 ..... are only concerned with section 3 (which is the charging section) which deals with tax on luxury provided in a hotel in ..... 19971122of 2002r.rekha6-11-199815-3-19971315of 2002pramodha9-1-199824-10-19961316of 2002ganapati29-8-199823-8-1997provided that where charges for lodging are payable otherwise than on a daily basis, then, for the purposes of determining the tax liability under this section, the charges shall be computed as for a day, based on the period of lodging for which the charges are payable :provided further that where any charges for lodging are ..... telephone instrument whether one uses it or not is compulsorily subjected to payment of luxury tax and the charging section speaks about luxury provided in a hotel in respect of every room and levy is payable ..... judgment of the learned single judge the legislature thought it fit to make necessary amendments to exclude telephone and laundry charges from the purview of luxury tax under section 3(1) in conformity with the circular which was quashed by the learned single judge. ..... charges have not been passed on to their clients and if they have been passed on to their clients the monies shall remain with the state and if established before the assessing authorities that charges have not been passed on to their clients then the appellants would be entitled to adjustment in future .....
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