JOTHI TIMBER MART & OTHERS vs CORPORATION OF CALlCUT & ANOTHER

The Supreme Court upheld the validity of Section 126 of the Calicut City Municipal Act, 1961, which levies a timber tax on timber entering the city, stating that the State Legislature is competent to enact such a provision under Entry 52 of List II of the 7th Schedule of the Constitution. The Court clarified that the levy applies only to timber brought in for consumption, use, or sale, and not for other purposes. The appeal against the High Court's decision was dismissed, affirming the Division Bench's ruling that the tax is constitutionally valid.