UNION OF INDIA Vs. KERALA BAR HOTELS ASSOCIATION

JUDGEMENT

(1.) These appeals are preferred against the common judgment, by which, the learned single Judge, allowed a batch of writ petitions, holding that sub clauses (zzzzv) and (zzzzw) of Clause 105 of Section 65 of the Finance Act, 1994, as amended by Finance Act, 2011 are illegal and unenforceable. Sub-clauses (zzzzv) and (zzzzw) of Clause 105 of Section 65 of the Finance Act, 1994, as amended by Finance Act, 2011, read as follows :

(2.) Petitioners in the writ petitions were hoteliers running air-conditioned restaurants, serving alcoholic beverages. They challenged the Amendment Act, referred to above on the ground that the matters covered by the newly introduced sub clauses are enumerated in Entries 54 and 62, respectively, of List II of the Seventh Schedule to the Constitution and therefore, the union was incompetent to introduce the said sub clauses in Clause 105 of Section 65 of the Finance Act, 1994. Entries 54 and 62 of List II of the Seventh Schedule of the Constitution read as follows:

(3.) The learned single Judge found that the matters covered by sub clauses (zzzzv) and (zzzzw) of Clause 105 of Section 65 of the Finance Act, 1994, as amended by Finance Act, 2011, are matters enumerated in Entries 54 and 62 respectively, of List II of the Seventh Schedule to the Constitution and hence, beyond the legislative competence of the Union to impose tax on such matters, invoking Entry 97 of List I of the Seventh Schedule of the Constitution. Hence, these appeals by the Union of India.