SUDHAKARAN Vs. STATE OF KERALA

JUDGEMENT

(1.) WHETHER the provisions of S.5A of the Kerala Building Tax Act, 1975 (hereinafter referred to as 'the Act') levying a luxury tax of two thousand rupees annually on all residential buildings having a plinth area of 278.7 square meters or more and completed on or after April 1, 1999 are unconstitutional? This is the short question which arises for consideration in this Writ Appeal directed against the judgment dated February 18, 2003 delivered by a learned Single Judge whereby the provision has been held to be constitutionally valid.

(2.) SINCE the issue involved is purely legal, it is not necessary to refer to the facts of the case. The learned counsel for the appellant has reiterated all the submissions made before the learned Single Judge but has laid more emphasis on three contentions. It is urged that the assessment of luxury tax on the basis of plinth area is illegal and that the cut off date of April 1, 1999 as fixed is arbitrary and that the classification of luxury buildings and non luxury buildings is also arbitrary because there is no slab system and the same rate of tax is charged for all luxury buildings howsoever big they may be.

(3.) THE argument is devoid of merit and cannot be accepted. It is not in dispute that the State legislature has the power to levy tax on luxuries under Entry 62 of List II of the Seventh Schedule to the Constitution which reads as under: