Luxury Tax Leviable on Ayurveda Treatment, Yoga, and Meditation Related Charges: Kerala HC [Read Order]
After hearing arguments from both sides, the court concluded that the petitioner's objection regarding the inclusion of ayurveda income lacked legal merit

Kerala High Court – Kerala HC – Kerala HC Luxury Tax Ruling – Luxury Tax on Ayurveda Treatment – Yoga and Meditation Taxation – Taxscan
Kerala High Court – Kerala HC – Kerala HC Luxury Tax Ruling – Luxury Tax on Ayurveda Treatment – Yoga and Meditation Taxation – Taxscan
The Kerala High Court ruled that the luxury tax can be levied on certain charges, particularly those related to ayurveda treatment, yoga, and meditation under Kerala Tax on Luxuries Act,1976.
The dispute revolves around the order of the Kerala Value Added Tax Appellate Tribunal, Thiruvananthapuram, and order of the same Tribunal in Review Petition No.1 of 2023, both of which were challenged by the petitioner through an OP( TAX ) before the Kerala High Court.
The petitioner, an assessee, was taxed under various categories including room rent, ayurveda treatment charges, transportation charges, yoga, and meditation charges, and miscellaneous income.
It contested the tax assessment, arguing that certain charges, particularly those related to ayurveda treatment, yoga, and meditation, shouldn't have been included in the taxable turnover under the luxury tax act. Despite the petitioner's claims, the assessing authority upheld the tax demand.
Upon appeal, the First Appellate Authority excluded some turnover but retained the inclusion of yoga and meditation charges and miscellaneous income. Subsequently, the matter was brought before the Tribunal.
The VAT Tribunal upheld the inclusion of charges contested by the petitioner, citing the petitioner's own specifications regarding excluded turnover and the absence of challenges against certain charges. However, the Tribunal remanded the case regarding the addition of miscellaneous income for further consideration by the assessing authority.
During the proceedings of the OP( TAX ), the assessing authority issued a consequential order purportedly in compliance with the Tribunal's directives.
Considering submissions from both sides, the bench of Justice DR. A.K. Jayasankaran Nambiar and Justice Kauser Edappagath observed that “the Contention of the petitioner with regard to the inclusion of an amount of Rs.3,12,13,293/- towards ayurveda income after giving all deductions as per law cannot be legally countenanced.” The High Court emphasised the petitioner's own submissions and the absence of substantiated figures from the petitioner's accounts to contest the tax demand.
Furthermore, the court noted that any grievances regarding the assessing authority's compliance with the Tribunal's directives should be addressed through the appropriate appellate channels. Consequently, the court dismissed the OP( TAX ), asserting its lack of merit.
To Read the full text of the Order CLICK HERE
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