K.K. Mathew, J.

1. The petitioners are dealers in tobacco and tobacco preparations doing business at Mattancherry in the name and style of "A.S. Bava, Tobacconists, Mattancherry." They challenge the validity of the Luxury Tax on Tobacco (Validation) Act, 1964 (Act 9 of 1964, hereinafter called the Act) and pray for a declaration that the Act is ultra vires the powers of the Kerala Legislature, and for issuing appropriate directions prohibiting the respondent from enforcing the provisions of the Act against them.

2. The system of collecting tobacco revenue under the Cochin Tobacco Act Act 7 of 1084 and the Travancore Tobacco Act, Act 1 of 1087 and the rules thereunder, upto August 1950 was to auction what are called 'A' class and 'B' class shops. In addition to these there were also 'C' class shops for retail sale of tobacco. By the Finance Act 25 of 1950 the Central Excises and Salt Act, 1 of 1944, was extended to Travancore - Cochin State. S.13(2) of the Finance Act of 1950 provided that if immediately before the 1st day of April 1950, there was in force any law in any State other than Jammu and Kashmir corresponding to, but other than, an Act referred to in sub-s.(1) or (2)