Ayurvedic Centre Classified as Hospital, Not Hotel: Kerala HC Sets Aside Luxury Tax

Escapade Resorts Pvt. Ltd. Vs Commercial Tax Officer (Wc & Lt) (Kerala High Court) The writ petition concerns a challenge by a private limited company operating an Ayurvedic treatment centre at the leased Kollengode Palace against an assessment order passed under the Kerala Tax on Luxuries Act, 1976. The authorities treated the establishment as a “hotel” and assessed luxury tax on both room rent and treatment charges for the years 2004-05 to 2007-08. The petitioner argued that the centre functioned exclusively as a full-fledged Ayurvedic hospital, admitting only individuals who agreed ...