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1971 (4) TMI 93 - SC - Central ExciseWhether the levy made under the impugned rule [Rule III of the Rules framed under Section 90 of the Bihar and Orissa Excise Act, 1915] is a fee? Whether the fee levied is, within the permissible limit? Held that:- It is clear that before any levy can be upheld as a fee, it must be shown that the, levy has reasonable correlationship with the services rendered by the Government. In other words the levy must be proved to be, a quid pro quo for the services rendered. But in these matters it will be impossible to have an exact correlationship.The correlationship expected is one of a general character and not as of arithmetical exactitude. In this Court Counsel for the State prayed for an opportunity to place material to show that the levy in question is not disproportionate to the value of the services rendered by the State. Ordinarily we would not have acceded to that request coming at such a late stage, particularly in view of fact that the legal position had been clarified by a long chain of decisions of this Court. There is no doubt that the State has failed to place the necessary material before the Court to justify the levy. But the fact remains that because of the negligence of those in-charge of the defence of the State, the State may suffer considerable, financial loss, if we hold that the impugned Rule is void. Hence we are constrained to give the State a further chance to prove its case. In the result we allow the appeal, sat aside the order of the High Court and remit the case to the High Court for disposal according to law in the light of this decision. A further opportunity be given to the State to place material before that court to show that the value of the services rendered by the State has reasonable correlationship with the fee charged
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