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TMI Blog2011 (3) TMI 1502X X X X Extracts X X X X X X X X Extracts X X X X ..... 96 - - - Dated:- 16-3-2011 - HARSHA DEVANI AND ANTANI H.B., JJ. JUDGMENT:- The judgment of the court was delivered by Ms. HARSHA DEVANI J. By this petition under articles 226 and 227 of the Constitution of India, the petitioner has challenged order dated May 9, 1995 passed by the District Collector, Vadodara (annexure E) and order dated January 9, 1996 passed by the Luxury Tax Commissioner, Gujarat State, Gandhinagar (annexure G to the petition). The petitioner, a private limited company, runs a residential hotel at Vadodara in the name of Hotel Utsav . The dispute in the present case pertains to payment of luxury tax under the provisions of the Gujarat Tax on Luxuries (Hotels and Lodging Houses) Act, 1977 (the Act) for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ay 9, 1995, respondent No. 1 confirmed the demand raised vide the notice issued in August, 1994 and directed the petitioner to pay Rs. 13,615.50 and simultaneously, attached the petitioner s bank account under section 154 of the Bombay Land Revenue Code and recovered the amount. Being aggrieved, the petitioner filed a revision application before the Luxury Tax Commissioner who, vide the impugned order dated January 9, 1996, confirmed the order passed by respondent No. 1. Being aggrieved, the petitioner has filed the present petition. Mr. M.C. Bhatt, learned advocate appearing on behalf of the petitioner submitted that the District Collector has not decided the important legal contention raised by the petitioner as to whether under the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... interpreted by the respondents to mean that interest is leviable at the rate of two per cent per month. Attention was invited to the Statement of Objects and Reasons behind introducing section 7A of the Act to submit that the same makes it amply clear that the provision has been inserted for providing for charging of interest at the rate of two per cent per month on the amount of tax or penalty which the proprietor fails to pay within the time provided in the Act. It was, accordingly, submitted that the impugned orders are just, legal and proper and do not warrant any interference by this court. In rejoinder, Mr. M. C. Bhatt, learned advocate, submitted that the Statement of Objects and Reasons can certainly be looked into, but that woul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mple interest at two per cent, of the amount of tax due for each month or part thereof for the period for which the tax remains unpaid. According to the learned advocate for the petitioner, the words two per cent are not qualified either by month or by year and as such, the same would normally be rate as per annum. However, in the opinion of the court, the said contention does not merit acceptance inasmuch as the true purport of the said provision is that in respect of the amount of tax due, for each month or part thereof simple interest has to be paid at two per cent for the period for which the tax remains unpaid. In other words, on the amount of tax due at the end of each month or part thereof, simple interest has to be calculated at t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... els and Lodging Houses) (Amendment) Bill, 1987 was introduced in the Assembly but could not be taken up for consideration by the Assembly for want of time. Therefore, as the Gujarat Legislative Assembly is not in session, this Ordinance is promulgated to achieve the aforesaid object. The Statement of Reasons and Objects for introducing section 7A of the Act makes the intention of the Legislature absolutely clear, namely, that provision has been made for charging interest at the rate of two per cent per month and not per year as is sought to be contended on behalf of the petitioner. It is settled legal position that for determining the purpose of the legislation, it is permissible to refer to the Statement of Objects and Reasons to look ..... X X X X Extracts X X X X X X X X Extracts X X X X
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