Ghodawat Pan Masala Products (I) Ltd. ... vs State Of Maharashtra And Ors.

The Supreme Court held that Section 3(B) of the Maharashtra Tax on Luxuries Act, 1987 is unconstitutional, aligning its reasoning with the earlier judgment in Godfrey Phillips India Ltd. v. State of U.P., which clarified that the term 'luxuries' in Entry 62 of List II of the Constitution does not permit taxation on goods or articles. The Court dismissed the High Court's judgment that upheld the validity of Section 3(B) and ordered any luxury tax collected by the appellants to be paid to the State Government. The appeal was allowed, setting aside the impugned judgment.