Early Times Report
Jammu, Dec 20 : CJM, Jammu, Suneet Gupta has stayed the implementation of notice of Deputy Controller of Metrology in which he had restrained hotels from charging service tax from customers. The court directive came in a suit filed by Jammu Hotel, Restaurant and Bar Association which had sought directive, declaring the plaintiff entitled for charging service tax from customers on the final bill and the November 19, 2016 order, that restrains the plaintiff from collecting service charges, as null and void, abinitio and without jurisdiction.
10 pc service charge is distributed among the employees of Hotels and Restaurants and it does not amount to service tax which is not applicable in J&K. The petitioner's counsel submitted that 10 pc service charge 'is purposely charged from customers for the personal services provided by the respective hotels and restaurants, like liquid soap, dand dryers, tissue paper, clothes and napkins it cannot by any stretch of imagination be equated with service tax which is not applicable in J&K for hotel industries'.
After hearing the counsel, the CJM said the court 'is of the opinion that at this stage, where defendants are yet to file their reply, it would be appropriate to stay the implementation of the notice issued by defendant No 3 to one of the plaintiffs'.
"As such, it is ordered that the enforcement and implementation of notice No LM/DC/(Enf)/ 194-200 of November 19, 2016 is stayed till the next date of hearing and till the objections of the defendants are filed and considered" he said. (JNF) |
