SPENCES HOTEL PVT. LTD. AND ANR. vs STATE OF WEST BENGAL AND ORS.

The Supreme Court upheld the validity of Section 4 of the West Bengal Entertainments and Luxuries (Hotels and Restaurants) Tax Act, 1972, which imposes a luxury tax based on air-conditioned floor space. The Court ruled that the classification made by the legislature was reasonable and did not violate Article 14 of the Constitution, as it applied uniformly to all air-conditioned hotels and restaurants. The appeal was dismissed, affirming that the tax was not discriminatory and that the legislature has the discretion to classify for taxation purposes.