Jammu Hotel Restaurant & Bar Association gets relief from Court

CJM stay implementation of notice Deputy Controller Legal Meterology

Jammu Tawi, December 20
Jammu Hotel, Resturaant and Bar Association get relief when CJM Jammu Suneet Gupta after hearing Adv Sumir Pandita stay the implementation of notice of Deputy Controller Meterlogy in which he restrained hotels not to charge service tax from customers.
This significant direction has been passed in a suit filed by Jammu Hotel Restaurant & Bar Association for declaration declaring the plaintiff entitled for receiving/charging the service charges from the customers on the final bill and further declaring the order dated 19-11-2016 restraining the plaintiff from collecting the service charges be declared as null and void, abinitio and without jurisdiction and and further prayer restraining the defendants from interfering in the collection of service charges (duly reflected on their menu card) by the plaintiff from their customers.
CJM Jammu Suneet Gupta after hearing Adv Sumir Pandita for the Association whereas Mohd Amir Awan for the state observed that Counsel for the Plaintiff that the said 10% Service Charge is distributed among the employees of the Hotels and Restaurants and it is not amounting to be Service Tax which is not applicable in the State of J & K . It has been insisted by the Ld. Counsel for the Plaintiff that whenever such 10% of Service Charge is received from the customers the same is purposely charged for the personal services provided by the respective hotels and Restaurant like Liquid Soap , Hand drayers , Tssue papers , Clothes and Napkins etc and it cannot by any stretch of imagination be equated with Service Tax which is not applicable in J & K State for Hotel Industries.
CJM Jammu after hearing Sumir Pandita in length observed that court is of the opinion that at this stage, where the defence of the defendants is yet to be filed , it would be appropriate to stay the implementation of the Notice issued by the Defendant No:3 to one of the Plaintiff’s. As such, it is ordered that the enforcement and implementation of Notice No: LM/DC/(Enf)/ 194-200/2016 dated: 19-11-2016 is stayed till the next date of hearing and till the objections of the defendants are filed and considered. JNF

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