2024 (2) TMI 869 - HC - VAT and Sales Tax

Valuation - Tax on Luxuries - inclusion of an amount towards ayurveda income after giving all deductions as per law in calculation of assessable value - HELD THAT - The contention of the petitioner with regard to the inclusion of an amount of Rs. 3,12,13,293/- towards ayurveda income after giving all deductions as per law cannot be legally countenanced - it is based on the submissions of the assessee himself and the figures declared by the assessee that the said turnover was subjected to tax under the Kerala Tax on Luxuries Act. In the absence of any figures substantiated by the accounts maintained by the assessee, produced at any stage before the authorities below, there are no reason to doubt the correctness of the decision of the Tribunal confirming the demand of tax under the said head. Addition of miscellaneous income - HELD THAT - During the pendency of this OP(TAX), the assessing authority passed the consequential order (Ext. P12) purportedly in compliance with the direction issued by the Tribunal in Ext. P10 order - if the petitioner has any grievance regarding the correctness of the said order of the assessing authority, to the extent it does not adhere to the directions of the Tribunal in Ext. P10 order, it is for him to agitate the same before the appellate authority, on merits. Petition dismissed.

Summary

Issues:
The judgment involves challenging Ext. P10 order of the Kerala Value Added Tax Appellate Tribunal and Ext. P11(a) order in Review Petition No. 1 of 2023 regarding the assessment under the Kerala Tax on Luxuries Act for the year 2014-2015.

Assessment of Room Rent and Ayurveda Treatment Charges:
The petitioner contended that they were taxed at a higher rate by being classified as a hotel instead of a hospital. The First Appellate Authority excluded the turnover representing the cost of medicines and professional charges, but included yoga and meditation charges and miscellaneous income in the taxable turnover. The Tribunal upheld the inclusion of charges not challenged by the petitioner and remanded the matter of miscellaneous income for further verification.

Consequential Order and Compliance:
During the proceedings, the assessing authority issued a consequential order in compliance with the Tribunal's directions in Ext. P10 order.

Ayurveda Income Assessment:
The Tribunal found that the turnover towards ayurveda income, as declared by the petitioner, was correctly subjected to tax under the Kerala Tax on Luxuries Act. The Tribunal rejected the petitioner's claim regarding the exclusion of certain expenses and upheld the assessment based on the figures provided by the petitioner.

Miscellaneous Income Inclusion:
Regarding the addition of miscellaneous income, the Tribunal found that the inclusion of Rs. 3,18,691/- in the taxable turnover was unsustainable under the charging provision of the Act. The Tribunal directed the assessing authority to reconsider this addition based on the accounts to be produced by the petitioner.

Dismissal of the Petition:
The Court dismissed the OP(TAX) as lacking merit, stating that any grievances regarding the assessing authority's order should be raised before the appellate authority. The petitioner was granted the liberty to challenge the order based on the Tribunal's directions.