State govt in 2013 had introduced the cess at the rate of three per cent
Picture used for representational purpose. (Photo: PTI)
Kochi: Kerala High Court on Tuesday declared as unconstitutional the ‘Mangalya Nidhi cess’ imposed on weddings conducted in three-star and above category hotels. Justice K. Vinod Chandran passed the order after several owners of auditoriums moved the court challenging the decision to charge cess from them.
The state government in 2013 had introduced the cess at the rate of three per cent of the celebration expenses in connection with marriages. While passing the Finance Act, the levy was changed substantially and a fixed slab rate was introduced at Rs 10,000 for AC auditoriums and Rs 5,000 for non-AC auditoriums in corporation and municipal areas, while Rs 7,500 and Rs 3,000 was to be levied respectively in panchayat areas. The cess is applicable to all star hotel halls and auditoriums with more than 500-seating capacity.
The court observed that the legislation is ultra vires of the power of the state legislature as conferred by the Constitution of India. Hence, the state has no right to levy and collect the cess. The petitioners argued that the state has no power to collect tax on marriages. Functions related to marriages are part of religion and the same will offend the freedom of practising religion.
( Source : dc correspondent )
Next Story
