A.G.MURALEEDHARAN NAIR Vs. INTELLIGENCE OFFICER

JUDGEMENT

(1.) HEARD the learned counsel for the petitioner and also the learned Government Pleader appearing for the respondents.

(2.) PETITIONER is the proprietor of M/s. Sarovaram Ayurvedic Back Water Resort. They were levied penalty under Section 17A of the Kerala Tax on Luxuries Act 1976 and Ext.P2 is the order. Appeal filed before the 2nd respondent was disposed of by Ext.P3 order whereby penalty levied was reduced to Rs.50,000.00. Further appeal was filed before the 3rd respondent Tribunal, which was disposed of by Ext.P4 order whereby the penalty was again reduced to an amount equal to the tax evaded. It is challenging Exts.P2, P3 and P4 orders, the writ petition is filed.

(3.) HOWEVER, Ext.P2 order passed by the 1st respondent shows that the Intelligence Inspectors of that office visited the resort and collected materials and it was found that the resort offers leisure and rejuvenation and is provided with a multi cuisine restaurant, conference hall, ayurvedic treatment, indoor game, boating, village tour etc. It was also found that house boat cruises are operated by DTPC and other house boat owners and that vegetarian and non vegetarian food are served in the restaurant. The details of the amounts realised were also collected. Accordingly, notice was issued to the petitioner, who filed his reply contending that it being an ayurvedic treatment center, the activities as involved in business attracts the definition of the luxury as contained in the Act.