M/S MANUELSONS HOTELS PRIVATE LIMITED vs STATE OF KERALA .

The Supreme Court ruled that the Kerala Building Tax Amendment Act, 1990, which introduced Section 3A allowing exemptions from building tax for tourism-related constructions, is valid and applicable to the appellants' hotel project. The Court held that the Government Order dated 11th July 1986, which declared tourism as an industry, provided a legitimate basis for the exemption. The appellants were entitled to the benefits of the exemption as their hotel was approved under the relevant government guidelines, thus upholding their claim against the tax authorities.