Luxury - Indian Laws - General

Luxury According to the Oxford English Dictionary (2nd edition vol. IX) luxury could among other meanings be defined as: (1) abundance, sumptuous enjoyment, (2) the habitual use of, or indulgence in what is choice or costly, (3) refined and intense enjoyment; means of luxurious enjoyment; (4) in a particularized sense, some- thing which conduces to enjoyment or comfort in addition to what are accounted the necessaries. Hence, in recent use, something which is desirable but not indispensable and (5) as an attribute as luxury coach, cruise duty, edition, flat, liner, shop, tax, trade. It appears that luxury has been defined by courts in the United States of America as An entirely relative term; a free indulgence in costly food, dress, furniture or anything expensive which gratifies the appetites or tastes ; also a mode of life characterized by material abundance and gratification of expensive tastes . ( Corpus Juris Secundum , volume IV, page 887). According to this definition, American courts appear to have opted for the definition of the word as submitted by the assessees and have held that it is an activity. However, we have also been referred by counsel for the States to other authoritative works such as Black s Law Dictionary (6th edition) in which a luxury tax is said to be a generic term for excise imposed on purchase of items which are not necessaries, e.g., tax on liquor or cigarettes. This definition is inconclusive as it merely defines what may have in fact been the subject-matter of tax in a particular statute. But theoretically luxuries is capable of covering each of the several meanings ascribed to the word. The question is how the word is to be construed in the Constitutional entry. Neither the dictionary meaning nor the meaning ascribed to the word judicially (for the reasons stated) resolves the ambiguity. The solution must be found in the language of the entry taking into consideration the Constitutional scheme with regard to the imposition of taxes and the collection of revenues. GODFREY PHILLIPS INDIA LTD. AND ANOTHER VERSUS STATE OF UP. AND OTHERS - 2005 (1) TMI 391 - SUPREME COURT