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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 ..... assessee in the bills had clearly indicated that they have collected service charges in addition to the charges for liquor. 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 circumstances involved in the matter - penalty not leviable. Petition disposed off. - W.P.(C) No. 25005 of 2012 - - - Dated:- 21-10-2016 - A.M. Shaffique, J. P. Ravindranath, Senior Government Pleader, for the petitioner Harisankar V. Menon, Smt. Meera V. Menon and Mahesh V. Menon for the respondent JUDGMENT State is the petitioner in this writ petition, wherein the challenge is to order passed by the Tribunal setting aside the assessment a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on which the Tribunal had set aside the assessment order as well as the penalty order is by stating that there is no provision in the Act to demand service charges when the customer is served liquor from a hotel room. The main argument raised by the learned Special Government Pleader is that the very levy of luxury tax clarifies the above point. Section 4 (1) as it then existed reads as under: Section 4. Levy and collection of Luxury Tax:- (1) Subject to the provisions of this Act, there shall be levied and collected a tax in respect of any luxury provided in a [hotel, house boat, hall, auditorium or kalyanamandapam or including those attached to hotels, clubs, kalyananmandapam and places of the like nature which, are rented for accomm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0) KTR 321 (Ker)]. 5. On the other hand, the learned counsel appearing for the respondent submits that there is no basis for luxury tax being charged on the services allegedly given in a room. In fact the rooms were permitted to be used by persons who were served with liquor. However, the documents would show that the certain amount is being collected under the head 'services'. 6. Learned counsel submits that when the charges for of food and liquor is exempted, the hotel had proceeded on the basis that all connected charges relating to the consumption of food and liquor requires to be exempted and therefore, even assuming that the respondent is liable to pay tax, there is no deliberate attempt to evade the tax and therefore t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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