M/S. GURUSWAMY & CO.ETC. vs STATE OF MYSORE & ORS.

The Supreme Court upheld the validity of the Mysore Health Cess Act, 1962, stating that the State Legislature had the competence to levy a health cess under various entries of List II of the Constitution, including duties of excise. The Court clarified that the health cess, although termed as such, is essentially a tax on revenue and can be levied on shop rent as it is connected to the sale of alcoholic liquors. The Court rejected the appellants' arguments regarding the lack of legislative competence and the nature of the cess, affirming that the cess is recoverable in the same manner as land revenue.