https://www.taxtmi.com/caselaws?id=161304 A levy on the stocking and vending of tobacco, being unconnected with its production or manufacture, is not excise duty and falls within the State Legislature's competence as a luxury tax. Tobacco was treated as an article of luxury, so taxation on its stocking and sale was valid under the State List. Although the licensing and advance payment scheme impeded the free flow of trade under Article 301, it was upheld as a restriction in the public interest and saved by Article 304(b) with Presidential assent. The validation and recovery provisions, including retrospective recovery of refunded amounts, were also held constitutionally valid because the State had legislative competence to validate the levy. en-us Wed, 12 Nov 1975 00:00:00 +0530 Sat, 09 May 2020 12:34:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=161304 A levy on the stocking and vending of tobacco, being unconnected with its production or manufacture, is not excise duty and falls within the State Legislature's competence as a luxury tax. Tobacco was treated as an article of luxury, so taxation on its stocking and sale was valid under the State List. Although the licensing and advance payment scheme impeded the free flow of trade under Article 301, it was upheld as a restriction in the public interest and saved by Article 304(b) with Presidential assent. The validation and recovery provisions, including retrospective recovery of refunded amounts, were also held constitutionally valid because the State had legislative competence to validate the levy. Case-Laws Indian Laws Wed, 12 Nov 1975 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=161304