STATE OF MYSORE & ORS. vs M/S. D. CAWASJI & CO. AND ORS.

The Supreme Court held that the levy of education cess on 'shop-rent', 'tree-tax', and 'tree-rent' under the Mysore Excise Act was invalid as it did not derive from a specific taxing entry in List II of the Constitution. The Court emphasized that legislative power to tax must be explicitly granted and cannot be incidental to other legislative powers. The High Court's ruling that no education cess could be levied on these items was upheld, reinforcing the principle that taxes must be imposed by authority of law as per Article 265 of the Constitution.