OM PRAKASH PURI AND ANR. versus STATE OF WEST BENGAL AND ORS.

Citation: [1991] 1 S.C.R. 465 · Decided: 16-02-1991 · Supreme Court of India · Bench: K.N. SAIKIA · Disposal: Dismissed
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Judgment (excerpt)

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OM PRAKASH PURI AND ANR. 
A 
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v. 
STATE OF WEST BENGAL AND ORS. 
FEBRUARY 16, 1991 
[K.N. SAIKIA AND MADAN MOHAN PUNCHHI, JJ .] 
B 
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Constitution of India, 1950: Article 14--Sections 3 and 4 of the 
West Bengal Entertainments and Luxuries (Hotels and Restaurants) 
Tax Act, 1972-Whether discriminatory and violative of 
,__. 
West Bengal Entertainments and Luxuries (Hotels and Restau-
--
ants) Tax Act, 1972: Sections 3 and 4-Constitutional validity of. 
c 
Under the West Bengal Entertainments and Luxuries (Hotels and 
'"V 
Restaurants) Tax Act, 1972 as amended in 1974, the appellants were 
called upon to make ad-hoc payment of luxury tax calculated at 
Rs.2,40,000. A representation from the Hotel Association to the 
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Respondents having been turned down, the appellants filed Writ Peti-
tion before the High Court, challenging the constitutional validity of the 
Act. 
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The Writ Petition was dismissed by a Single Judge. On appeal, 
the Division Bench declined to interfere holding that there was no dis-
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crimination, and thus there was no violation of Article 14 of the Con-
stitution. Aggrieved, the appellants preferred the present appeal. 
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Dismissing the appeal, this Court, 
HELD: 1. The Luxury Tax charged under Section 4 of the West 
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Bengal Entertainments and Luxuries (Hotels and Restaurants) Tax Act, 
1972, is not discriminatory and is constitutionally valid for the reasons 
stated in the judgment of this Court in a similar matter wherein the 
same contentions were urged. [467E-F] 
M/s. Spences Hotel Pvt. Ltd. & Anr. v. State of West Bengal and 
Ors., [1991] 1 SCR applied. 
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_...( 
2. Whatever has been stated by this Court in relation to Section 4 
of the Act would be equally applicable to Section 3 of the Act. [ 467F] 
East India Hotels Ltd. v. State of West Bengal, AIR 1990 SC 2029, 
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relied on. 
465 
A 
466 
SUPREME COURT REPORTS 
[1991] 1 S.C.R. 
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 4 of 
1977. 
From the Judgment and Order dated 3/4.3.1975 of the Calcutta 
High Court in Appeal No. 156 of 1974. 
B • 
G.L. Sanghi, Dhruv Mehta, Aman Vachhar and S.K. Mehta for 
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the Appellants. 
.).... 
Tapas Ray and G.S. Chatterjee for the Respondents. 
Harish N. Salve, Lalit Bhasin, Ms. Nina Gupta, Vibhu Bhakru, 
Pranab Mullick and Vineet Kumar for the intervener. 
The Judgment of the Court was delivered by 
K.N. SAIKIA, J. This appeal by certificate is from the Judg-
ment of the Calcutta High Court dated 4.3.1975 passed in appeal No. 
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156 of 1974. 
The appellants in partnership have been carrying on business of 
restaurants under the name and style of Trinca's at No. 17B, Park 
Street Calcutta, providing food and drinks (alcohol and non-alcohol) 
.._ 
to the customers under valid licences. Sometimes musical perfor-
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mances are also arranged. The restaurants are provided with air condi-
tioning plant. 
Under t'he West Bengal Entertainments and Luxuries. (Hotels 
and Restaurants) Tax Act, 1972 as amended by the Act of 1974, 
hereinafter referred to as 'tli.e Act', the respondents by their Memo 
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No. 4942/A.T. dated 9.12.1972 called upon the appellants to make ad 
hoc payment of luxury tax calculated at Rs.2,40,000.00. The President 
of the Hotelers' Association made a representation against this illegal 
tax which was turned down by the respondents, and thereafter the 
appellants challenged the validity of this action in the Calcutta High 
Court by filing Writ Petition No. 358 of 1973 on 16.5.1973. The appel-
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lants contended, inter alia before the High Court that the levy was 
unreasonable restriction on carrying the business; the Act was not 
meaningful and purposeful; the rules were confiscatory in nature; and 
the mode of calculation was not in conformity with the mainrobject and 
purpose of the Act. The learned Single Judge of the High' Court dis-
missed the writ petition relying on the Judgment passed on 6.3.1974 in 
H 
Writ Petition No. 338 of 1973 wherefrom Civil Appeal No. 406 of 1976 
was filed in this Court. 
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..... 
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OM PRAKASH v. STATE OF WEST BENGAL [SAIKIA, J.] 
467 
From the above order of the learned Single Judge, the appellants 
filed Appeal No. 1'56 of 1974 on 26.6.1974 before the Division Bench 
of the Calcutta High Court contending that the legislature cannot 
enlarge the scope of Entry 62 and seek to impose a tax on expenditure 
incurred by a customer on services rendered to him including food and 
drinks. The High Court held thats. 2(b) defined ente
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