IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE DR. JUSTICE A.K.JAYASANKARAN NAMBIAR &

THE HONOURABLE MR. JUSTICE SYAM KUMAR V.M.

TUESDAY, THE 4^TH DAY OF JUNE 2024 / 14TH JYAISHTA, 1946 OP (TAX) NO. 24 OF 2016 AGAINST THE ORDER/JUDGMENT DATED 04.08.2015 IN TA NO.124 OF 2010 OF S.T.A.T.ADDITIONAL BENCH, ERNAKULAM PETITIONER STATE OF KERALA REPRESENTED BY THE DEPUTY COMMISSIONER(LAW), COMMERCIAL TAXES, ERNAKULAM .

BY SR. GOVERNMENT PLEADER-SRI.V.K.SHAMSUDHEEN RESPONDENT M/S. M FAR HOTELS LTD KUNDANNOOR, MARADU P.O., ERNAKULAM.

BY ADVS.

SRI.P.J.ANILKUMAR SRI.A.KUMAR SMT G.MINI1748 SRI.P.S.SREE PRASAD THIS OP TAX HAVING COME UP FOR ADMISSION ON 04.06.2024, ALONG WITH OP (TAX).28/2016, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE DR. JUSTICE A.K.JAYASANKARAN NAMBIAR &

THE HONOURABLE MR. JUSTICE SYAM KUMAR V.M.

TUESDAY, THE 4^TH DAY OF JUNE 2024 / 14TH JYAISHTA, 1946 OP (TAX) NO. 28 OF 2016 AGAINST THE ORDER/JUDGMENT DATED 04.08.2015 IN TA NO.13 OF

2013 OF S.T.A.T.ADDITIONAL BENCH, ERNAKULAM PETITIONER STATE OF KERALA REPRESENTED BY THE DEPUTY COMMISSIONER (LAW), COMMERCIAL TAXES, ERNAKULAM BY ADV GOVERNMENT PLEADER SRI.V.K.SHAMSUDHEEN RESPONDENT:

M/S. M FAR HOTELS LTD.

KUNDANNOOR, MARADU P.O, ERNAKULAM PIN 682 011 BY ADVS.

SRI.P.J.ANILKUMAR SRI.JACOB JOHN TRIVANDRUM SRI.A.KUMAR SMTG.MINI 1748 SRI.P.S.SREE PRASAD THIS OP TAX HAVING COME UP FOR ADMISSION ON

04.06.2024, ALONG WITH OP (TAX).24/2016, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

J U D G M E N T

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Dr. A.K.Jayasankaran Nambiar, J.

As all these Original Petitions deal with the common issues, they are taken up for consideration together and dispose of by this common judgment.

2. In O.P(Tax) No.24 of 2016, the order of the Kerala Value Added Tax Appellate Tribunal dated 4.8.2015 is impugned which deals with the assessment year 2003-04. In O.P(Tax)No.28 of 2016, the same order of the Kerala Value Added Tax Appellate Tribunal dated 4.08.2015 is impugned to the extent it disposes four appeals preferred by the Revenue in relation to the assessment years 2004-05, 2005-06, 2006-07 and 2007-08.

3. The State of Kerala is the petitioner before us in both these Original Petitions impugning the common order of the Kerala Value Added Tax Appellate Tribunal on three issues that were decided against it by the Tribunal. Those issues are as follows:

1) Whether the charges received by the assessee from its customers out of the amounts paid to the Ayurveda Centre functioning in the premises of the hotel operated by it would attract the levy of luxury tax under the Kerala Tax on Luxuries Act?

2) Whether the charges received by the assessee from its customers out of the amounts paid to a Beauty Parlour functioning in the premises of the hotel operated by it would attract the levy of luxury tax under the Kerala Tax on Luxuries Act ?

3) Whether the charges collected by the assessee from clients/customers for the use by the latter of the Convention Centre operated by it would attract the levy of luxury tax under the Kerala Tax on Luxuries Act?

4. We find from a perusal of the orders of the Assessing Authority, First Appellate Authority and the Appellate Tribunal that the issues were decided against the assessee for all assessment years by the assessing authority at the first instance.

In the appeals preferred before the First Appellate Authority, while the First Appellate Authority allowed the claim of the assessee regarding non taxability of the charges received by them in connection with the operation of the Ayurveda Centre and Beauty Parlour for the various assessment years (except for 2003-04 when the charges received by the Ayurveda Centre was subjected to tax), it confirmed the levy of luxury tax in respect of the charges collected for use of the Convention Centre for the assessment years 2006-07 and 2007-08, but allowed the contention of the assessee with regard to the non taxability of the said income for the as