2011 (2) AIR Kar R 714

Karnataka High Court

Hon'ble Judge(s): N. Kumar, Ravi Malimath , JJ

( A ) Karnataka Tax on Luxuries Act (22 of 1979) S. 3 -D (as amended by Act 5 of 2000) — Levy of tax — On luxuries provided in club — Taxing event is attracted the moment luxury is provided and member is required to pay fee for that luxury — Actual utilization of luxury, irrelevant.If Court has to introduce the concept of utilization or consumption of the luxury as a condition precedent for the taxing event, if amounts to the Court re-writing the Section which is impermissible in law. There is no indication in the entire section about the legislative intent in that manner. (Paras14)If the club provides a luxury to its members and their members are required to pay a fee for utilizing such luxury, the charging section is attracted and luxury tax is liable to be paid by the club at the rate prescribed in the table in Section 3-D. Therefore, there is no scope for any ambiguity or doubt in so far as the liability to pay tax is concerned. In the entire scheme of the Section, there is no indication that the liability to pay tax arises only when the member utilizes the said luxury by paying a fee. On the contrary, the liability to tax arises when a luxury is provided and the member is required to pay for the luxury. Whether a member utilize the said luxury and pays fee or not, the taxing event is attracted, the moment the said luxury is provided for a price. (Paras10).....