A.B. ABDUL KADIR & ORS ETC. vs STATE OF KERALA

The Supreme Court upheld the Kerala Luxury Tax on Tobacco (Validation) Act, 1964, affirming its constitutionality under Article 304(b) of the Constitution, which allows for reasonable restrictions in public interest. The Court clarified that the tax imposed was a luxury tax under Entry 62 of List II and not an excise duty under Entry 84 of List I, thus validating the retrospective collection of fees for licenses from August 1950 to December 1957. The Court dismissed the appeals, stating that the previous judgment in A. B. Abdullkadir & ors. v. The State of Kerala did not apply as res judicata to the current case regarding the 1964 Act's validity.