SC rejects review petition filed against State Govt. to levy tax on Lotteries

Case Details: State of Meghalaya v. State of Karnataka - [2022] 142 taxmann.com 6 (SC)

Judiciary and Counsel Details

• • M.R. Shah & B.V. Nagarathna, JJ.

Facts of the Case

The Honorable Supreme Court had earlier held that Lottery, irrespective of whether it is conducted or it is organised by Government of India or Government of State or is authorized by State or is conducted by an agency or instrumentality of State Government or a Central Government or any private player, is ‘betting and gambling’. The Supreme Court in its earlier decision [2022] 139 taxmann.com 454 (SC) concluded that the State Legislatures have power to tax lotteries under Entry 62 of List II.

Supreme Court Held

The Karnataka Tax on Lotteries Act, 2004 and Kerala Tax on Paper Lotteries Act, 2005 are valid as these two State Legislatures possessed legislative competence to enact such Acts, the Supreme Court concluded. The review petition was filed against this decision of Apex Court. The Honorable Apex Court dismissed review petition by observing that there was no error apparent on face of record to reconsider impugned order.