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TMI Blog1999 (1) TMI 518X X X X Extracts X X X X X X X X Extracts X X X X ..... not less than five thousand rupees per day there shall be levied and collected a tax on such charges at the following rates namely: (a) Where charges for marriage hall per day are not less than five thousand rupees but 5 per cent of such less than ten thousand rupees charges. (b) Where charges for marriage hall per day are not less than ten thousand rupees but 10 per cent of such less than twenty thousand rupees charges. (c) Where charges for marriage hall per day 15 per cent of such are twenty thousand rupees and above. charges. Provided that where charges for marriage hall are payable otherwise than on daily basis, then for the purposes of determining the tax liability under this section, the charges shall be computed as for a day, b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Finance Act, 1994 which has created the charge on taxable services under section 68 and "taxable services" have been defined under section 65(41), clause (p) which refers to providing a service to a client by a mantap owner keeping in relation to the use of mantap in any manner including the facilities provided to the client in relations to such use, and also the services rendered as a caterer. It is submitted that since the act of letting out marriage halls is considered to be a service, the State Legislature has no jurisdiction or authority to levy tax on marriage halls particularly mantaps treating their activity as luxury. In accordance with entry 97 of List I of the Seventh Schedule, read with article 248 of the Constitution all the en ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case of Express Hotels Pvt. Ltd. v. State of Gujarat [1994] 74 STC 157 (SC) where after taking into consideration the dictionary meaning of the word "luxury" it was observed that the connotation of the word "luxury" is something which conduces enjoyment over and above the necessaries of life. 5.. I have considered over the matter. 6.. The definition of "luxury provided in a hotel" given under section 2(e) of the Gujarat Act is similar to the definition given under section 2(5) of the Karnataka Tax on Luxuries Act, 1979. Various contentions were raised in the case of Express Hotels Pvt. Ltd. [1994] 74 STC 157 (SC). While examining the scope of entry 62 it was observed by the apex Court that the tax levied under entry 62 cannot be restricte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under section 2(4-B) are the commodities or service specified in the Schedule and since no such specification is made in the Schedule the charging section is not operative. This contention has also no force because the operation of the charging section cannot be restricted by the definition clause. The charging section creates the charge on the luxury provided in a marriage hall and is not restricted to the luxuries only in respect of commodities or services for which the other section has taken care. The "charges for luxury" provided in a marriage hall have been subjected to tax in accordance with the charges made subject to the minimum limit of Rs. 5,000 per day. 9.. Another contention raised is that the charges for marriage hall includ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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