ARULMIGU RAMANATHASWAMY DEVASTHANAM Vs. PRINCIPAL COMMISSIONER AND COMMISSIONER OF COMMERCIAL TAXES CHENNAI

JUDGEMENT

(1.) THESE two revision petitions are filed under Art.227 of Constitution of India against the orders of assessment made by Deputy Commercial Tax Officer, Ramanathapuram whereby the petitioner is assessed to pay taxes under the Tamil Nadu Tax on Luxurious Hotels and Lodging Houses Act, 1981.

(2.) RAMANATHAPURAM Arulmigu Ramanathasamy temple is running its cottages for occupation of the worshippers and pilgrims and used to collect rental charges from the occupants by issuing receipts. It is also said that it collected rent at the particular rate from the occupants and the same is liable to be taxed under the provisions of that Act.

(3.) ON the basis of these two definitions, the argument is that all conditions are complied with and it is not the concern of the Department whether the business results in profit or not or whether there is a motive to make profit or not. Learned Government Pleader also relied on the decision in United India Insurance Co. Ltd. v. Commissioner of Commercial Taxes United India Insurance Co. Ltd. v. Commissioner of Commercial Taxes United India Insurance Co. Ltd. v. Commissioner of Commercial Taxes , 78 S.T.C. 99 (Karn) for the said purpose. Reliance was also placed on two decisions of the Honourable Supreme Court. In State of Tamil Nadu v. M/ s.Shakti Estates State of Tamil Nadu v. M/ s.Shakti Estates State of Tamil Nadu v. M/ s.Shakti Estates , A.I.R. 1989 S.C. 945 which is a case coming under Tamil Nadu General Sales Tax Act, where the word "business" has been defined, and also the decision reported in Member Board of Revenue, W.B. v. Controller of Stores, Eastern Railways Member Board of Revenue, W.B. v. Controller of Stores, Eastern Railways Member Board of Revenue, W.B. v. Controller of Stores, Eastern Railways , A.I.R. 1989 S.C. 1468 which is the case under Bengal Finance (Sales Tax) Act. The argument which is accepted by the Department was in transactions in connection with, or incidental or ancillary to its business as carrier of goods and even if there is no motive for making a profit, that will amount to a business.