TRIVANDRUM CLUB Vs. SALES TAX OFFICER

JUDGEMENT

(1.) Whether the rent realised by a club for the rooms and cottages let out to its members and their guests is exigible to tax under the Kerala Tax on Luxuries Act, 1976 (hereinafter referred to as the 'Act' for short) is the question raised by the petitioner. Trivandrum Club, a Society registered under the Travancore-Cochin Literary, Scientific and Charitable Societies Registration Act, 1955 is the petitioner and Ext.P1 is its Rules and Bye-Laws. They were issued Exts.P2 and P3 pre-assessment notices proposing to complete assessment of luxury tax under the Act for the years 2002-03 to 2005-06. In these notices, it was alleged that the petitioner is providing residential accommodation and services in their 7A/Crooms, 5 A/C cottages and 2 Non-A/C rooms and that therefore it is liable for luxury tax under the Act. On receipt of these notices, petitioner submitted objection, a copy of which is Ext.P4, where it was mainly contended that the Act does not apply to social clubs such as the petitioner. They also contended that they are providing accommodation only to their members and their guests and that this was not done by way of business. Overruling their objections, assessment was completed by Exts.P5 to P9 orders. It is challenging these orders this Writ Petition is filed. On the other hand, according to the respondents, there are several rooms attached to the petitioner club, which are let out on rent to the members and their guests and therefore, the club is a hotel as defined in S.2(e) of the Act. On this basis it was contended that the petitioner is liable to comply with the provisions of the Act.

(2.) I have considered the submissions made by both sides.

(3.) At the oust itself, it is clarified that the dispute raised in this Writ Petition concerns only the liability of the petitioner for luxury tax in respect of the rooms and cottages let out by it to its members and their guests and the tax liability in respect of the other facilities in the club were neither raised by the petitioner nor considered by this court.