TMI Blog2015 (8) TMI 587X X X X Extracts X X X X X X X X Extracts X X X X ..... uld be excessive especially with the passage of time. We have discussed when administrative and service charges can be recovered along with the relevant case law in some detail in our judgment of even date in the Appeal titled as State of Tamil Nadu vs. Tvl. South Indian Sugar Mills [2015 (8) TMI 588 - SUPREME COURT], which should be adverted to in the interests of avoiding prolixity. We uphold the High Court’s finding that in light of Synthetics and Chemicals Limited [1989 (10) TMI 214 - SUPREME COURT OF INDIA] and Vam Organics Chemicals Ltd., the subject Regulatory Fees intended to prevent the conversion of alcoholic liquor for industrial use to that for human consumption is legal, and need not be strictly quid pro quo as long as it is no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch the concerned authorities seeking a refund and with a direction to the authorities to consider the same in accordance with the law. In pursuance of G.O.M. No. 147 dated 6.3.1998, the Government introduced the collection of Administrative Fee of 50 paise per bulk litre in lieu of withdrawal of collection of the abovementioned privilege fees as per the orders of the Seven Judge Bench of this Court in Synthetics Chemicals Limited vs. State of U.P. (1990) 1 SCC 109. This Rule was given retrospective effect from 25.10.1989. The Government therefore responded to the Appellant by issuing G.O.Rt. No. 313 dated 13.3.2000, whereby in accordance with G.O.M. No. 147, the Commissioner of Prohibition and Excise was permitted to adjust the excess amo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be incidental. The High Court also considered this aspect of the law in Vam Organics Chemicals Ltd. vs. State of U.P. (1997) 2 SC 715, the Appellants wherein were manufacturers of vinyl acetate monomer , for which industrial alcohol is the main stock. The Appellants therein were liable to pay a denaturation fee at the rate of 7 paise per litre. They challenged this, contending that the State of U.P. had no power to legislate or levy taxes in respect of industrial alcohol, and that the levy was bad as it was not based on a quid pro quo basis. The Supreme Court held that so long as any alcoholic preparation can be diverted to human consumption, the States shall have the power to legislate as also to impose taxes, etc. Ergo, the State ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r in Vam Organics Chemicals Ltd. We find no force behind either of these contentions. No ground has been made out for the former contention, and Section 72(3) of the Andhra Pradesh Excise Act, 1968 specifically allows that Any rules under this Act may be made with retrospective effect and when such a rule is made the reason for making the rule shall be specified in a statement to be laid before both Houses of the State Legislature. Regarding the latter contention, 7 paise was deemed to be reasonable on the facts of that case which does not in any way indicate that a larger amount would be excessive especially with the passage of time. We have discussed when administrative and service charges can be recovered along with the relevant cas ..... X X X X Extracts X X X X X X X X Extracts X X X X
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