The Kerala High Court on Tuesday struck down as unconstitutional the State government’s decision to levy ‘Mangalya Nidhi Cess’ from owners of auditoriums with a 500-seating capacity and three star and above hotels for holding wedding and associated celebrations.
Justice K. Vinod Chandran made the declaration while allowing a batch of petitions filed by the owners of auditoriums in Kollam and Kasaragod districts, challenging the decision to charge the cess from the owners of auditoriums and hotels.
The court observed that the levy definitely was not a fee and could only be treated as a tax. In fact, the legislation on the cess was unconstitutional as the State had no power to make such legislation in these matters as per the Constitution. The State government had no right to levy and collect such as cess.
Budget proposalIt was in the budget of 2013 that Finance Minister K.M. Mani had introduced the cess at the rate of 3 per cent of the celebration expenses in connection with the conduct or reception of marriages. A fixed slab rate was introduced at Rs.10,000 for AC auditoriums and Rs.5,000 for non-Ac auditoriums in the Corporation and municipal areas, while Rs.7,500 and Rs.3000 were levied, respectively, in panchayat areas. The cess was applicable to all star hotel halls and auditoriums with more than 500-seating capacity.
Petitioners’ pleaThe petitioners said it was a tax and the State had no power to enact such a law. Functions related to marriages were part of religious and pious ceremonies and the levy would offend the freedom of practicing religion.