9911796707
TMI Blog2003 (11) TMI 48X X X X Extracts X X X X X X X X Extracts X X X X ..... room and thereafter the assessee itself pay the tax to the Government – Thus, Tribunal is right in treating 'luxury tax' collected by the appellant as a trading receipt liable to be assessed as the income of the appellant's business - - - - - Dated:- 19-11-2003 - Judge(s) : R. JAYASIMHA BABU., S. R. SINGHARAVELU. JUDGMENT The judgment of the court was delivered by R. JAYASIMHA BABU J.-The assessee is a hotelier. As the charges levied for the rooms in the hotel exceed the amount prescribed under the Tamil Nadu Tax on Luxuries in Hotels and Lodging Houses Act, 1981 (hereinafter referred to as "the Act"), and the assessee is a person who provides luxury in a hotel as defined under section 2(g) of the Act, the assessee is required, u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... primary is made clear by sub-section (5) of section 5 of the Act which reads thus: "5. (5) Where any proprietor fails or neglects to collect the tax payable under this Act, the tax shall be paid by the proprietor as if the tax was collected by the proprietor from the person to whom the luxury was provided and who was accordingly liable to pay the same." The Act does not contemplate any assessment or demand being made on the occupant. As already noticed, the hotelier is bound to pay the tax. Whether he chooses to collect the tax or does not collect the tax is entirely for him to decide. The amount of tax paid by the hotelier to the State would be deductible from its income while computing the hotelier's assessable income under the Income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the hotelier/assessee becomes liable for the payment of the tax. The liability of the hotelier/assessee to pay the State is absolute, provided, the rooms had been occupied by the customers of the assessee. Having regard to the scheme of the Act, it is not possible to accept the argument that was put forth by learned counsel for the assessee that the position of the assessee is that of an agent of the Government who has been directed to collect tax from its customers and remit the same to the Government and that the assessee's position is similar to that of one who is required to deduct tax at source on payment made by it to others. This is not a case where the assessee makes payments to anyone. It is a case where the assessee receives ..... X X X X Extracts X X X X X X X X Extracts X X X X
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