AYURVEDA HOSPITAL MANAGEMENTS ASOCIATIONS Vs. STATE OF KERALA, REPRESENTED BY CHIEF SECRETARY TO GOVERNMENT, SECRETARIAT

JUDGEMENT

(1.) Issues raised in these Writ Petitions being common, these cases were heard together and are disposed of by this common judgment, treating W.P.(C) No. 1390/09 as the leading case. Petitioner states that it is an Ayurvedic Hospital, where various traditional Ayurvedic treatments are provided to patients. For this purpose, they have appointed qualified doctors and nursing staff. It is also stated that they are maintaining 26 cottages, 7 rooms and a general ward. They have obtained necessary licenses issued by the Drugs Controller and the Asst.Excise Commissioner, Palakkad. They have also obtained registration as a Private Hospital from the Chalissery Grama Panchayat and also License under the Kerala Panchayat Raj Act, 1994.

(2.) By Finance Act, 2008 (Act 21 of 2008), with effect from 1.4.2008, certain amendments were made to the Kerala Tax on Luxuries Act, 1976 (hereinafter referred to as the "Act" for short). By this amendment, hospitals were brought within the purview of the Act and "luxury provided in hospitals" was also made taxable. Thereupon, allegedly under compulsion, petitioner took out registration as provided under Section 4(1)(iii) of the Act and started complying with the requirements thereunder. It is stated that, while so, the 5th respondent conducted an inspection of the petitioner's hospital and thereafter issued Ext.P3 notice calling upon them to produce their certificate of registration and other documents and the relevant part of this notice reads thus:

(3.) It is stated that on receipt of this notice, petitioner's representative met the 5th respondent and explained that the demand in the notice is unsustainable and that the respondent threatened to make the petitioner liable for tax from 2003 onwards and levy penalty for non payment of tax due for the said period. It was there upon this Writ Petition was filed seeking mainly to declare that the amendment extending coverage of the Act to hospitals unconstitutional and also to quash Ext.P3 notice.