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HARISANKAR V. MENON
Cradle Calicut Maternity Care Pvt. Ltd. – Appellant
Versus
State of Kerala, Represented by the Secretary, Commercial Taxes, Govt. of Kerala, Trivandrum, Kerala – Respondent
JUDGMENT :
Harisankar V. Menon, J.
These two writ petitions are filed by the petitioner–a private limited company–mainly engaged in providing health care services, specialised in maternity related care/ treatment.
2. The petitioner is holding registration under the provisions of the Kerala Tax on Luxuries Act, 1976 (hereinafter referred to as ‘the Act’). The petitioner has a total of twenty two rooms of which four are Suite Rooms and the balance eighteen are Deluxe Rooms. The petitioner points out that, it is also providing some “sophisticated medical beds” imported from abroad having multiple functions for providing optimum nursing care for expecting mothers. Petitioner points out that the afore medical facility is provided to the patients/expecting mothers who require special medical care, collecting a separate amount towards the use of the said bed. The petitioner points out that as regards the room rent collected, it is admittedly satisfying luxury tax under the statute. However, as regards the charges for the facility of “medical bed”, as above, the petitioner had not declared the said receipts under the statute and was also not paying tax thereunder, taking the stand that the re
The court affirmed that luxury tax applies to medical bed charges in hospitals, while penalties for non-declaration were set aside due to the petitioner's bona fide belief of non-liability.
Hiring charges are considered a service provided by the hotel and are taxable under the Kerala Tax on Luxuries Act, 1976.
An establishment classified primarily as a hotel providing luxury and leisure services is liable for luxury tax, not merely based on Ayurvedic treatment provisions.
The amendment exempting luxury tax on ICU charges is retrospective, reinforcing the principle that clarificatory statutes apply to prior assessments.
Amendments clarifying tax exemptions for ICU services are retrospective, relieving hospitals from GST on such charges based on legislative intent.
Amendments clarifying tax applicability operate retrospectively, confirming that luxury tax on ICU charges is exempt based on legislative intent as clarified in the GST Council meeting.
Excise duty exemptions granted for industrial development are capital receipts, not subject to taxation under normal provisions or included in MAT calculations.
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