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TMI Blog1998 (11) TMI 619X X X X Extracts X X X X X X X X Extracts X X X X ..... hotel, the rate of charges for which (including charges for air-conditioning, telephone, television, radio, music, extra beds and other amenities for which charges are compulsorily payable, but excluding charges for food and drinks) is not less than one hundred and fifty rupees per room per day; (ii) provision in hotels, whether to resident or others of such facility as health club, beauty parlour, swimming pools, conference hall and the like for which charges are separately made; Section 3 is the charging section which provide tax on luxury provided in a hotel. The relevant provisions are as under: Levy and collection of tax on luxury provided in a hotel.-(1) Subject to the provisions of this Act, there shall be levied and collected a tax on the luxury provided in a hotel in respect of every room (to be known as luxury tax ) at the following rates, namely, . 2.. It is contended by the learned counsel for the petitioner that tax on telephone charges was not collected earlier because of a circular issued by the Commissioner on February 15, 1983 by which it was made clear that no tax is leviable on telephone charges as telephone charges are not charges for lodging and the de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IR 1981 SC 972 wherein the apex Court has made the following observations: Thus, the charging section and the computation provisions together constitute an integrated code. When there is a case to which the computation provisions cannot apply at all, it is evident that such a case was not intended to fall within the charging section. Otherwise, one would be driven to conclude that while a certain income seems to fall within the charging section there is no scheme of computation for quantifying it. The legislative pattern discernible in the Act is against such a conclusion. It must be borne in mind that the legislative intent is presumed to run uniformly through the entire conspectus of provisions pertaining to each head of income. No doubt there is a qualitative difference between the charging provision and a computation provision. And ordinarily the operation of the charging provision cannot be affected by the construction of a particular computation provision. But the question here is whether it is possible to apply the computation provision at all if a certain interpretation is pressed on the charging provision. That pertains to the fundamental integrality of the statutory sche ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... necessity cannot be confined to goods and articles. There can be elements of extravagance or indulgence in the quality of services and activities. Observations in the case of A.B. Abdul Kadir v. State of Kerala [1976] 2 SCR 690 were also taken into consideration wherein it was observed: The word luxury in the above context has not been used in the sense of something pertaining to the exclusive preserve of the rich. The fact that the use of an article is popular among the poor sections of the population would not detract from its description or nature of being an article of luxury. The connotation of the word luxury is something which conduces enjoyment over and above the necessaries of life. It denotes something which is superfluous and not indispensable and to which we take with a view to enjoy, amuse or entertain ourselves. An expenditure on something which is in excess of what is required for economic and personal well-being would be expenditure on luxury although the expenditure may be of a nature which is incurred by a large number of people, including those not economically well-off. 12.. In the above case section 2(4) of the Gujarat Tax on Luxuries (Hotels an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ifferent context than the entry No. 62 which empowers the State Legislature to enact a law levying taxes on luxuries. The Finance Act, 1994, for the services rendered by telephone is in respect of charges which are collected by telephone department under entry No. 31, List I, of the Seventh Schedule. Inclusion of charges for telephone in the luxury provided in a hotel cannot be considered to be beyond jurisdiction of the State Legislature. The contention that basic information of accommodation and tariff in form No. 1-BH does not contemplate the information reading the telephone charges collected has also no substance because the daily account of occupancy of rooms and collection of tax has to be given in form 2-H. Column (6) of the said form relates to rate of charges for accommodation for residence per day per room. Column (10) relates to total amount of charges for accommodation for residence. This has reference to the number and date of bill as has been provided in column (13) and this is beside the accommodation charges. The other charges which falls in the category of luxury provided in a hotel have to be included thereunder. 15.. The contention that the computation provi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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