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13.1. This Section was amended by Act No.7/2003 with effect from 1.4.2003. By the amendment, the words 'telephone calls' in the definition of 'charges for lodging', were inserted in this provision.

Section 2(4) which defines the word "Hotel", reads thus:-

"Hotel", which means, a building or part of a building where lodging, accommodation, with or without board is by way of business provided for a monetary consideration, and includes a lodging houses, [club] [and holiday resorts].

13.2 Section 2(4-B) defines "Luxuries". The definition of 'Luxuries' reads thus:-

2(4-B)"Luxuries" mean [services] ministering to enjoyment, comfort or pleasure extraordinary to necessities of life;

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13.3. Section 2(5) defines 'Luxury provided in a hotel', reads thus:-

2(5)"Luxury provided in a hotel" means -

(i) accommodation for lodging provided in a hotel, the rate of charges for which (including charges for air-conditioning, telephone, television, radio, music, extra beds and other amenities for which charges are compulsorily payable, but excluding charges for food and drinks) is not less than [one hundred and fifty] rupees per room per day;

14. In the present case, the arguments advanced by learned counsel for the parties were centered around sub-section (5) of Section 2. Sub-section(5) defines 'luxury provided in a hotel'. Luxuries provided in hotels

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are of two kinds, one, luxuries in rooms, and two, luxuries like, health club, beauty parlour etc. Clause(i) of sub-section (5) of Section 2 provides for rate of charges for luxuries in room or for accommodation for lodging, which are compulsorily payable. For instance, luxuries like telephone, television etc., whether they are used or not, they are subjected to payment of luxury tax.

17. Sub-section (4-B) of Section 2 defines "Luxuries", which means, services ministering to enjoyment, comfort or pleasure extraordinary to necessities of life. Sub-section (5) of Section 2, defines 'luxury provided in a hotel', which means, provisions in hotels, whether to residents or others of such facility as health club, beauty parlour, swimming pool, conference hall and the like for which charges are separately made.

18. It is not in dispute and could not be disputed that the respondent-hotels charge for the services and not a rent for the goods/equipments used for rendering