FEDERATION OF HOTEL & RESTAURANT ASSOCIATIONOF INDIA, ETC. vs UNION OF INDIA & ORS.

The Supreme Court upheld the validity of the Hotel Expenditure Act, 1987, which imposes a 10% ad valorem tax on chargeable expenditure in hotels charging Rs.400 per day per individual. The Court ruled that the classification of hotels for tax purposes was not arbitrary and did not violate Article 14 or Article 19(1)(g) of the Constitution. The petitioners' arguments regarding legislative competence and the nature of the tax were dismissed, affirming the Parliament's authority under Articles 246 and 248.