EAST INDIA HOTELS LIMITED Vs. STATE OF WEST BENGAL
LAWS(SC)-1990-7-61
SUPREME COURT OF INDIA (FROM: CALCUTTA)
Decided on July 12,1990

EAST INDIA HOTELS LIMITED Appellant
VERSUS
STATE OF WEST BENGAL Respondents


Referred Judgements :-

EXPRESS HOTELS PRIVATE LIMITED VS. STATE OF GUJARAT [REFERRED TO]



Cited Judgements :-

GODFREY PHILLIPS INDIA LTD VS. STATE OF U P [LAWS(SC)-2005-1-76] [REFERRED TO]


JUDGEMENT

- (1.)This appeal is directed against the judgment of the High Court upholding the validity of the West Bengal Entertainments and Luxuries (Hotels and Restaurants) Tax Act, 1972, (West Bengal Act XXI of 1972). The principal challenge is as against the validity of Sections 3 and 4.
(2.)Section 3 provides:
"An entertainment tax shall be payable by every person who is admitted into or enters any place, within either a hotel or restaurant, which is provided with luxury, where an entertainment is provided, and such tax shall be calculated at the rate of 10 per centum of the total sum paid or payable by such person for all the services including any fee for admission into such place of entertainment:

Provided that where payment is charged for admission to the place of entertainment, the entertainment tax under this section shall in no case be less than 25 per centurn of such payment for admission to the place of entertainment."

Section 4 reads:

"There shall be charged, levied and paid to the State Government a luxury tax by the proprietor of every hotel and restaurant in which there is provision for luxury and such tax shall be calculated at the rate of an annual sum of rupees one hundred for every ten square metres or part thereof in respect of so much of the floor area of the hotel which is provided with luxury."

(3.)To make the picture complete it is also necessary to refer to the definitions of entertainment and luxury. Section 2 (b) defines:
"entertainment" means any exhibition, performance, amusement, game, sport, cabaret, dance or floor show and includes performance by any singer, musician or bandsman provided in any hotel or restaurant;

Section 2(c):

"entertainment tax" means tax payable under Section 3 of this Act;

Similarly luxury has been defined under Section 2 (d) as follows:

"luxury" means provision for air-conditioning through air-conditioner or central air-conditioning or any other mechanical means provided in any of the rooms, or in any part of a building which constitutes a hotel or restaurant;

Luxury tax means as defined under S. 2(e):

"luxury tax" means tax levied under Section 4 of this Act;

;


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