Cradle Calicut Maternity Care Pvt. Ltd. Vs State of Kerala (Kerala High Court)
Kerala High Court held that charges collected for provision of sophisticated medical beds for providing optimum nursing care to expecting mothers is liable to luxury tax under the Kerala Tax on Luxuries Act, 1976.
Facts- The petitioner is holding registration under the provisions of the Kerala Tax on Luxuries Act, 1976. The petitioner has a total of 22 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 receipts for the use of the medical bed as above, are outside the purview of imposition of luxury tax under the Act.
