Law: Central Excise Rules, 1944

Section: 2

Law: Pakistan Hotels and Restaurants Act, 1976

Section:

Law: Constitution of Pakistan, 1973

Section:

  Central Excise Rules, 1944--- ---Rr.96 & 226---Excise duty on the rental- of arcade shops---Liability---Rent recovered from any part of a hotel building or any building within the -premises of hotel used for providing services, utilities and facilities which are necessary for proper and adequate maintenance of the hotel business or its classification under the Pakistan Hotels and Restaurants Act and Rules would be chargeable to excise duty. Pakistan Services Ltd. v: Superintendent Central Excise and Land Customs and 2 others NLR 1980 Tax Kar. 168 and M/s. Hotel Mciropole Ltd. v. Pakistan and another 1982 C L C 1682 ref. Pakistan Hotels and Restaurants Act (LXXXI of 1976)-- ---S.2---Pakistan Hotels and Restaurants Rules, 1977, R.11(1)---Classification of hotles in categories---Essential requirements before granting permission and classifying a premises as a hotel---Considerations for levy of duty---Hotel maintaining shop/shopping arcade liable to exercise duty---Facilities to be provided by a Five-Star Hotel, . Under the Pakistan Hotels and Restaurants Act; 1977 the hotels obtain licence for running the business and, they are classified in category A, B, C, D & E. The last one being the Five-Star Hotel is relevant for this case. Before granting this permission and classifying it as a hotel of either of these grades there are certain requirements which are to be fulfilled by the hotel management. So far Five-Star Hotels are concerned the requirements are set out in Form `E' prescribed under Rule 11 (1) of the Pakistan Hotels and Restaurant Rules, 1977. It is a pro forma to be filled in by the applicant furnishing particulars required by it for purposes of grant of licence and classification. Where shops are inside the hotel building they would be catering the requirement as mentioned in item 21 (b). The' facilities provided under item 21 (b) are completely different and independent of item 21 (c) which provides for shopping arcade within the premises of the hotel. Therefore, even if the hotel is maintaining certain shops as mentioned in item 21 (b) it is required to have a shopping arcade which should be within the premises of the hotel.…