Law:

Section:

Central Excises and Salt Act (1 of 1944)S. 3 [as amended by Finance Ordinance (XI of 1970)] read with item 1 of Part II of First Schedule & Federal Government Notification No. SOR-229(1)/71, dated 29th June, 1971-Hotel, excise duty payable' .by-All services, facilities and utilities including catering supplies and merchandise provided or rendered at all hotels being subject to levy of excise duty, unless exempted, and exemption clause contemplating levy of such charge only when daily room rent, with or without charges, for breakfast or other services, not in excess of Rs: 25 per day on any day in year of assessment, exemption, held, not available if total amount charged as room rent with or without breakfast or other charges exceeds Rs. 25 per day-Held further : Preparation of separate bills on account of room rent and breakfast or other charges-Does not enable hotel to claim exemption. ORDER ANWARUL HAQ, C. J.-This appeal, by the leave of the Court is directed against the judgment of a Division Bench of the High Court of Baluchistan, dated the 21st of September, 1977, by which a constitution petition moved by the appellant in the matter of exemption from the levy of central excise duty or the services provided at its hotel called the Imdad Hotel, Quetta was dismissed. By a notice dated the 21st of October, 1971, the Superintendent of Central Excise and Land Customs, Quetta, required the appellant to pay excise duty at the rate of 10 % of the charges made for all the services rendered by the appellant to its customers is respect of the rooms in blocks A & D of its hotel with effect from the 26th of June, 1971, as envisaged by section 3 of the Central Excises and Salt Act, 1944, as amended by the Finance Ordinance, 1970. It was stated that the duty was leviable as the appellant's hotel did not qualify for exemption granted by means of Notification No. SRO-224(1)/71 dated the 29th of June, 1971, issued under section . 12-A of the Central Excises and Salt Act, 1944 for the reason that the charges levied by the appellant as room rent exceeded Rs. 25 per day on any one day during the year. The appellant contested its liability to pay the duty in question on…

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