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TMI Blog2012 (5) TMI 566X X X X Extracts X X X X X X X X Extracts X X X X ..... o their members or their guests, an activity carried on by the club in terms of its by laws, is a business activity of the club. The provision of Section 4(2A) renders members of clubs also liable for tax at the rate as indicated therein and the tax liability of the members is in addition to the liability of the clubs under section 4 of the Act. Therefore, this provision will not be of any assistance to the petitioner. W.P. dismissed. - W.P. (C) No. 35005 of 2007 - - - Dated:- 24-5-2012 - ANTONY DOMINIC, J. For the Appellant : T.M. Sreedharan and V.P. Narayanan For the Respondent : Noble Mathew, Senior Government Pleader, ANTONY DOMINIC J. Whether the rent realized by a club for the rooms and cottages let out to its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s it was contended that the petitioner is liable to comply with the provisions of the Act. I have considered the submissions made by both sides. At the outset itself, it is clarified that the dispute raised in this writ petition concerns only the liability of the petitioner for luxury tax in respect of the rooms and cottages let out by it to its members and their guests and the tax liability in respect of the other facilities in the club were neither raised by the petitioner nor considered by this court. To answer the contentions raised in this writ petition, it is necessary to refer to some of the provisions of the Act section 4 of the Act provides for levy and collection of luxury tax and sections 4(1), 4(1)(i) and 4(2)(a), being ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he expressions hotel and luxury have been defined in sections 2(e) and (ee), respectively, as follows: 2. (e) 'hotel' means a building or part of a building where residential accommodation is by way of business provided for a monetary consideration and includes a lodging house. ... 2. (ee) 'luxury' means a commodity or service that ministers comfort or pleasure; In so far as this case is concerned, section 4 read with section 2(e) of the Act shows that hotels which provide residential accommodation by way of business and for monetary consideration, are liable for luxury tax under the Act. That apart, halls, auditoriums or kalyanamandapams attached to clubs, which are rented out for accommodation for residen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he basis of the type of guests accommodated. Secondly, in view of the words used in section 4 of the Act, once residential accommodation is provided in the club for monetary consideration, the fact that those accommodated are members or their guests, is not of any consequence. Therefore, this contention has no substance at all. It was argued that the club is not providing residential accommodation by way of business to render its activity a hotel. This contention is also not of any substance. The words of a statute must be interpreted in the context of the statute in which the words occur and not in any other manner. See in this context the apex court judgment in S. Mohan Lal v. R. Kondiah [1979] 2 SCC 616. Explanation to section 2(e) to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... room, bar, billiard rooms, snooker room, tennis court, swimming pool, sauna jacuzzi and the like, gymnasium, golf course, internet facility, video, video compact disk, digital video disk and computer games and having a membership strength of at least twenty five. In my understanding, this provision renders members of clubs also liable for tax at the rate as indicated therein and the tax liability of the members is in addition to the liability of the clubs under section 4 of the Act. Therefore, this provision will not be of any assistance to the petitioner. For the aforesaid reasons, I do not find anything illegal in the impugned assessment orders and therefore, this writ petition is to be dismissed and I do so. - - TaxTMI - TMITa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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