- (1.) The assessees/appellants are either manufacturers, dealers or sellers of tobacco and tobacco products. They have challenged the imposition and levy of a luxury tax on tobacco and tobacco products by treating them as 'luxuries' within the meaning of the word in Entry 62 of list II.
(2.) Entry 62 of List II of the Seventh Schedule of the Constitution relates to the exclusive power of State Legislatures to make laws with respect to "taxes on luxuries including taxes on entertainments, amusements, betting and gambling. " Several States have enacted legislation which they claim are referable to the right to tax luxuries under this Entry. We are concerned with the Uttar Pradesh Tax on Luxuries Act, 1955, the Andhra Pradesh Tax on luxuries Act, 1987 and the West Bengal Tax on Luxuries Act, 1994. The legislative competence of these statutes was challenged by the assessees before different fora in some cases partially successfully, in others not. To the extent the assessees were unsuccessful they have challenged the decisions before us. In those cases in which the assessees were successful the concerned State has filed the appeals.
(3.) The States have differed in their interpretation of the word "luxuries" of Entry 62, List II since they have argued in the context and from the point of view of the particular statute sought to be defended as legislatively competent. Thus although the principle question to be resolved would be the ambit of Entry 62 of List-II, the arguments require a determination of the nature of tax sought to be levied by the three statutes in dispute before us, before we resolve the question. Uttar Pradesh Tax on Luxuries Act, 1995;