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TMI Blog2016 (10) TMI 1185X X X X Extracts X X X X X X X X Extracts X X X X ..... a bar attached hotel. In terms with provisions of the Kerala Tax on Luxuries Act, 1976, the respondent is also under obligation to pay luxury tax levied in terms of Section 4 of the Act. The proceedings were taken by the assessing officer alleging escapement of turnover of service tax on the ground that during the period 2004-05 and 2005-06, certain service charges were collected, but tax was not paid. Service charges were collected from customers who were provided the facility to consume liquor in the rooms of the hotel. Accordingly, the assessment orders were passed as Ext.P1. Separate appeals were filed before the Deputy Commissioner who confirmed the demand. On the very same basis, the penalty proceedings were taken against the petition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ads as under:- [(2) Luxury Tax shall be levided and collected, (a) in respect of a hotel, for charges of accommodation for residence and other amenities and services provided in the hotel, excluding food and liquor,- Reference is also made to the definition of words 'hotel' and 'luxury' under Section 2(e) which reads as under: 2 (e) "hotel" means a building or part o 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." 4. A bare reading of Section 4 (2) clarifies the above point. In respect of hotel, there is clear indication that luxury tax shall be levie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issue is well covered on a bare reading of the provision itself, which gives a clearly indication that luxury tax can be levied on the services as stated by the assessing officer in Ext.P1 order. It is clear that other than the charges for food and liquor, all other services are liable to be taxed. That apart, the assessee in the bills had clearly indicated that they have collected service charges in addition to the charges for liquor. In the said circumstances, the order passed by the Tribunal is clearly erroneous and liable to be set aside. 8. However, having regard to the fact that there is no deliberate attempt on the part of the respondent in not paying the tax and it had occurred only on account of mistake of the factual circumstance ..... X X X X Extracts X X X X X X X X Extracts X X X X
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