K. Vinod Chandran, J.

1. Challenging two assessment orders and penalties proposed or imposed under Section 17A of the Kerala Tax on Luxuries Act, 1976 [for brevity “LT Act”], the petitioners raise the question of whether the facilities availed by the members of the unique, newly developed “Time-share arrangements” can be brought under the definition of “luxuries” and taxed under the LT Act.

2. The writ petitions are filed by three entities carrying on Resorts under timeshare arrangements; namely M/s. Mahindra Holidays and Resorts India Ltd. [for brevity “MHR”], M/s. Sterling Holiday Resorts (India) Limited [“SHR”] and The Goan Beach Resorts Pvt. Ltd [“GBR”].

3. W.P. (C) No. 20728 of 2015, which was referred to by the petitioners, challenge the penalty order issued against MHR for the years 2013-14 (Exhibit P3) and 2014-15 (Exhibit P4) and the notice of demand for 2013-14 (Exhibit P9) and 2014-15 (Exhibit P10) issued with respect to their Lake View Resorts at Chinnakkanal, Munnar. W.P. (C) No. 20674 of 2015 is filed by MHR with respect to their resort at Poovar, Thiruvananthapuram; which was issued with Exhibits P4 and P5 notices, for the years 2013-14 and 2014-15, under Section 17A of the LT Act. W.P. (C) No. 32579 of 2015 is against two Resorts of MHR at Kumarakom and Ashtamudi, Chavara, wherein Exhibit P12 is an assessment order for the year 2012-13 and Exhibits P21 and P23 penalty orders under the LT Act for the years 2013-14 and 2014-15; all with respect to the resort at Kumarakom. Exhibit P25 is the notice for the year 2013-14 against the Resort at Ashtamudi, Chavara. W.P. (C) No. 13553 of 2016 is again against the Resort of MHR at Ashtamudi, Chavara; the challenge being to Exhibit P1 penalty order for the year 2013-14. In W.P. (C) No. 13062, MHR challenge the penalty orders issued for the years 2013-14 (Exhibit P6) and 2014-15 (Exhibit P8) against their Resort at Poovar, Thiruvananthapuram. W.P. (C) Nos. 25032 of 2016, 25033 of 2016 and 19615 of 2015 respectively challenge the penalty orders issued for the years 2012-13 (Exhibit P4), 2014-15 (Exhibit P6) and 2013-14 (Exhibit P6) against the “Terrace Green Munnar Resort” of SHR. W.P. (C) No. 34100 of 2016 impugn a interim order on condition passed by the Appellate Authority in an appeal against assessment for the year 2014-15 of GHR. The findings in the various orders, are more or less similar and this Court has referred to the findings from the impugned orders of assessment and penalty in W.P. (C) No. 32579 of 2015 and W.P. (C) No. 20728 of 2015.

4. Learned Senior Counsel Sri. Mohan Parasaran placed compelling arguments for the petitioners and the State was ably represented by learned Senior Counsel Sri. R. Venkataraman.

5. The petitioners are registered under the LT Act and have Resorts at various tourist centers; inside the State. The petitioners were issued with notices for assessment in two instances and under Section 17A of the LT Act calling upon them to show cause as to why the accommodation provided to those persons who had taken membership under the timeshare arrangement were not disclosed in the returns or the books of accounts and why the petitioners have not paid tax for the component of “luxury” enjoyed by the said members.

6. The petitioners would contend that timeshare facility is a unique concept, by which the parent Company; which owns or rents out Resorts situated all over the country and even outside, gives membership by selling “Vacation Ownership” [Timeshare] providing holiday facilities to its members. A member can avail of “7 Nights/8 Days” holiday every year in a span of 33/25/10 years, depending on eligibility and availability at any of the Resorts of the assessee existing at the time of membership and acquired during the course of membership. When the members so exercise their right to enjoy a holiday in any of the Resorts for a specified period, they are not charged for the accommodation. For any other facilities enjoyed during the stay, th