HC directs govt to accept tax on prospective basis from Megha

Kerala High court directed the state government to accept the tax from Megha Distributors.

Updated: Jan 21, 2011, 21:07 PM IST

Kochi: Kerala High court today directed the
state government to accept the tax from Megha Distributors,
promoters of Bhutan lottery and two others on a prospective
basis from on Friday.

The government should not insist on the provisions of
payment of tax under sect 10 of the Kerala Tax on Paper
lotteries act of 2005, justice C K Abdul Rehim said in his
order after admitting the petitions, challenging the
legality of the Lottery Ordinance 2010, and referring them to
a division bench.

The court also restrained enforcement of ammendment to
taxation rules introduced till the disposal of the petitions.
The rules contain procedure related to enforcement of
ordinance.

Court said attempts of the state to legislate on lottery
are motivated by the idea of preventing social menace. It is a
matter of common knowledge that pernicious effects and
gambling nature involved in lottery tickets is mainly
affecting the lower strata of the society. Therefore it is the
duty of the government to protect such vulnerable sector from
being exposed to such criminal exploitations, the judge
observed.

But such measurers canot be permitted to transgress the
fields of powers distinctly conferred on the constituion by
Union government and overnments of others states.

Only course left to the government to protect such social
interst is to declare the state as lottery free zone, the
judge held.

PTI