2009 (4) TMI 909 - HC - VAT and Sales Tax

Summary

Issues involved: Challenge against demand notice for luxury tax exemption u/s 4(1) of Kerala Tax on Luxuries Act, 1976 for buildings owned by Devaswom located within temple premises.

Judgment Summary:

Issue 1: Challenge against demand notice for luxury tax exemption
The writ appeal was filed challenging the judgment of the Single Judge regarding a demand notice for luxury tax on rent received from lodging Kalyanamandapam and other facilities provided in buildings owned by the Devaswom. The Devaswom submitted a statement (Ext.P8) stating that all buildings are within the temple premises. Proviso to Section 4(1) of the Act grants exemption to halls and auditoriums within places of worship owned by such institutions. The exemption requires buildings to be within the premises of a place of worship and owned by the religious institution controlling the place of worship. As the buildings were within the temple premises and owned by the Devaswom, they qualified for exemption. The writ appeal was allowed, vacating the Single Judge's judgment and quashing the demand notice. However, the second respondent was given the freedom to conduct an enquiry for buildings located outside the temple premises.

In conclusion, the writ appeal was allowed, and the demand notice for luxury tax was quashed for buildings owned by the Devaswom located within the temple premises, as they qualified for exemption u/s 4(1) of the Kerala Tax on Luxuries Act, 1976.