KERALA FINE ARTS SOCIETY Vs. STATE OF KERALA

JUDGEMENT

(1.) The issues raised in these Writ Petitions are connected. Therefore, these cases were heard together and are disposed of by this common judgment. W.P. (C) No. 5623 of 2009 is treated as the leading case.

(2.) The petitioner is a society registered under the Travancore Cochin Literary, Scientific and Charitable Societies Registration Act, 1955. Ext. P1 is its Bye-laws. Petitioner owns an Auditorium, viz., Fine Arts Hall, Ernakulam. On 22.4.2008, third respondent inspected the Auditorium of the petitioner and prepared a Shop Inspection Report. It was found that the petitioner was letting out the Auditorium on rent for cultural programmes " as well as other functions like Marriages, Meetings, Receptions etc.

(3.) Thereupon notice was issued to the petitioner calling upon them to produce the books of accounts for the years 2005-2006 to 2008-2009. On verification of the books of accounts, it was found by the respondents that they had received Rs. 5,45,700/-, Rs. 6,40,150-, Rs. 9,43,280/- and Rs. 61,200/- respectively during the aforesaid assessment years. Thereupon, Ext. P7 notice was issued to the petitioner under S. 17A of the Kerala Tax on Luxuries Act, 1976 (hereinafter referred to as 'the Act'). To that notice, petitioner filed Ext. P8 reply. Objections raised were overruled and Exts. P9 to P13 orders were passed imposing penalty on the petitioner as provided under S. 17A of the Act, being double the amount of luxury sought to be evaded by them. It was thereupon, they filed this Writ Petition.