As per case facts, the constitutional validity of the Jammu & Kashmir Hotel (Amenities and Services) Tariff Taxation Act, 1980, was challenged. The appellants argued that the tax levied on ... gross receipts of hotel keepers constituted a tax on "income," a subject exclusively within Parliament's legislative competence under Entry 82, List I. The High Court, however, affirmed the Act's validity, leading to these appeals and connected Writ Petitions. The question arose whether the Jammu & Kashmir State Legislature had the legislative competence to enact the said Act. Finally, the Supreme Court, dismissing the appeals and Writ Petitions, held that the challenge to the Act's validity on grounds of legislative competence must be rejected. Relying on a previous Constitution Bench judgment, it was clarified that the concept of a tax on 'luxuries' under Entry 62, List 2, extends beyond tangible goods to include services and activities, and that price can serve as a valid indicator of luxury. The Court affirmed that the Jammu & Kashmir Legislature possessed the competence to enact such a law under Entry 62, List 2, through its residuary power granted by the Presidential Order, concluding that the Act was not a tax on income under Entry 82, List I.