Supreme Court of India · 1989-10-25
INDIA CEMENT LTD. vs STATE OF TAMIL NADU ETC.
- Citation / case number
- SC 1970/60298
- Court
- Supreme Court of India
- Petitioner
- INDIA CEMENT LTD.
- Respondent
- STATE OF TAMIL NADU ETC.
- Bench
- VENKATARAMIAH, E.S. (CJ),MUKHARJI, SABYASACHI ,MISRA RANGNATH,OZA, G.L. & SINGH, K.N. ,NATRAJAN, S. & RAY, B.C.
Judgment text excerpt
The Supreme Court ruled that the levy of cess on royalty under Sections 115 and 116 of the Madras Panchayats Act, 1958 is ultra vires the State legislature as it constitutes a tax on royalty rather than a tax on land. The Court emphasized that the cess cannot be justified under Entries 49, 50, or 45 of List II of the Seventh Schedule of the Constitution. Consequently, the appeal was allowed, declaring the cess illegal and invalid.