Contact us   Feedback   Annual Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2015 (8) TMI 587 - SUPREME COURT

2015 (8) TMI 587 - SUPREME COURT - TMI - Levy of Administrative Fee at the rate of 50 paise per bulk litre - industrial alcohol obtained from a distillery. - Competency of State legislature - Held that:- Appellant contends that the abovementioned amendment cannot be given retrospective effect, and that the fees should be levied at the rate of 7 paise per litre, since this amount was found to be “reasonable and proper” in Vam Organics Chemicals Ltd [1997 (1) TMI 512 - SUPREME COURT OF INDIA] - No .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

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 not excessive - Decided against assessee. - Civil Appeal Nos. 5307-5308 of 200 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

litre or any other rate as may be fixed by the Government from time to time on industrial alcohol obtained from a distillery. 2. The Appellant is a manufacturer of Ethyl Acetate, the basic raw material for which is industrial alcohol. The Appellant has been receiving allotments of denatured spirit from the Respondents since 1972. By way of an amendment to Rule 3 of the Andhra Pradesh Denatured Spirit and Denatured Spirituous Preparations Ruled, 1971 (1971 Rules for brevity), the collection of a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ccordance 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. 31 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

gh Court once again, seeking the issuance of a writ of Mandamus declaring that the amendment of Rule 3 of the 1971 Rules as amended by G.O.M. No. 147 is arbitrary, illegal, ultra vires and unenforceable, and a further declaration that the Appellant is entitled to the refund of the entire amount collected as gallonage fees with interest at 18% per annum. The Appellant s case was that the State cannot make any law in purported exercise of its legislative competence with reference to Entry 8 of Lis .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

, the regulatory fees only could be justified. In fact, the regulation should be the main purpose, the fee or earning out of it has to 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 th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e of regulatory fees, like the license fees, existence of quid pro quo is not necessary although the fee imposed must not be, in the circumstances of the case, excessive. Keeping in view the quantum and nature of work involved in supervising the process of denaturation and the consequent expenses incurred by the State, the fee of 7 paise per litre was held to be reasonable and proper. The High Court found that the decision of the Supreme Court in Vam Organics Chemicals Ltd. was a complete answer .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version