M/S. Hotel Alakananda & Anr vs Commercial Tax Officer & Ors

The Supreme Court addressed the applicability of Section 7(b) of the Kerala General Sales Tax Act, 1963, which was amended with retrospective effect from 1.7.2006, to dealers who had already contracted for payment of turnover tax under the unamended Section 7 for the assessment year 2006-07. The Court held that the retrospective application of the amended provisions does not violate Article 14 and Article 19(1)(g) of the Constitution, affirming that Sections 7(a) and 7(b) operate in different spheres. The judgment clarified the legal standing of compounded tax rates for bar-attached hotels under the amended law.