D. C. GOUSE AND CO. ETC. vs STATE OF KERALA & ANR. ETC.

The Supreme Court upheld the constitutional validity of the Kerala Building Tax Act, 1975, affirming that the State Legislature has the authority to impose a non-recurring tax on buildings under Entry 49 of List II of the Seventh Schedule. The Court rejected arguments that the tax was unconstitutional for being retrospective or for being based on hypothetical capital values, clarifying that the definition of 'tax' under Article 366(28) encompasses various forms of taxation. The judgment confirmed that the tax is valid as it directly relates to buildings rather than general assets, thus falling within the legislative competence of the State.