Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + SC VAT and Sales Tax - 2006 (8) TMI SC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2006 (8) TMI 307 - SC - VAT and Sales TaxWhether the impost in question is a fee or a tax? Whether there is a broad and general correlationship between the totality of the fee on the one hand, and the totality of the expenses of the services on the other? Held that:- Appeal dismissed. Cess in question is in substance a fee as it is being levied for rendering to the rural public the service of rural development for the purposes stated in para 9 of the Act. Clearly roads, bridges and storage facilities have to be built in rural areas for progress, and naturally this will require generating funds. Thus, even if no specific service is rendered to any particular individual from whom the fee has been realised, the cess in question is nevertheless a fee, for the reasons already mentioned above. Services are being rendered to the people in the rural areas as mentioned in section 9 of the Act.
|