TMI Blog1956 (8) TMI 59X X X X Extracts X X X X X X X X Extracts X X X X ..... co Vend Pees Act, 1934, which was enacted with the object of regulating the sale of manufactured tobacco in municipal and certain other areas. Section 3 imposed a statutory obligation on all vendors of tobacco to take out a dealer's licence and Section 4 declared that every licence shall be granted on payment of such fees as may be prescribed by the State Government. The State Government prescribed an annual licence fee at the rate of ₹ 2/- in the year 1935 but increased it to ₹ 3/- in 1939, ₹ 5/- in 1941 and ₹ 20/- in 1950/ The Act of 1934 was repealed in the year 1952 but was re-enacted in substantially the same form in the year 1954. Rule 4 of the rules framed under the new Act authorises the issue of the following kinds of licences on the fees mentioned against each, namely- (1) Manufacturer's or distributing agent's licence .............. ₹ 500/- per annum (2) Licence for a dealer who Has more than one assistant or employee .............. ₹ 240/- per annum (3) Licence for a dealer who has only one assistant or employee .............. Rs. 60/- per annum (4) Licence for a dealer or hawker who has no assistant or employ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hand, the charge is levied for the purpose of regulating a business or occupation and the statute requires compliance with certain conditions in addition to the payment of the prescribed sum, such a sum is a licence proper imposed by virtue of the power to regulate -- 'United Artists Corporation V. James'23 P Supp 353 (F). The amount of the imposition, or exaction must also be taken into consideration, for the amount of the charge may be so heavy or burdensome as to lead one irresistibly to the conclusion, considering the nature of the business or occupation to which it was applied, that although it was described as a fee it was in substance and effect, a tax. If the amount exacted is required to cover the actual expenses of issuing the licence and inspecting and controlling the business or occupation it is a licence fee proper and not a tax. But the mere fact that these fees yield a revenue In excess of that required for the purpose of regulation will not convert the fees into a tax where the object of the imposition is not to raise revenue but to regulate or control the particular business. Young blood v. Sexton (1875) 20 Am. Bep. 654 (G). It is absolutely impossible to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... censing the possession and sale of tobacco and has been designated by the Legislature as the Punjab Tabacco Vend Pees Act, 1954. It prohibits the dealing in manufactured tobacco without licence and requires that in addition to taking out a dealer's licence on payment of such fee as may be prescribed by the State Government the dealer shall comply with the terms and conditions of the licence issued to him. Officers have power to enter and inspect places in which manufactured tobacco is kept for sale, to examine and take into possession accounts maintained in such places, to investigate offences punishable under the Act and to grant ball to persons who are alleged to have contravened the provisions of the Act. A person who sells manufactured tobacco without a dealer's licence and a holder of a dealer's licence who commits a breach of the conditions subject to which the licence has been granted is punishable with a fine which may extend to ₹ 500/-. These provisions appear to indicate that the Act of 1954 has been enacted principally with the object of regulating and restraining the sale of tobacco and not with the object of providing revenue for the State. 9. Mr. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... but he has not been able to invite our attention to any piece of evidence which might impose the inference which his counsel wishes us to draw.I am accordingly of the opinion that neither the Act of 19S4 nor the rules which have been framed in exercise of the powers conferred by the said Act can be invalidated on the ground only that the imposition yields a revenue in excess of that required for the purpose of regulation. 11. In AIR 1954 S.C. 388 at p. 395 (A), their Lordships of the Supreme Court expressed the View that a payment cannot be regarded as a fee unless the amount collected is earmarked to meet the expenses of rendering certain services and unless it is kept out of the general revenues of the State for being spent for general public purposes. The learned counsel for the petitioner contends that as the income derived from the licences issued under the Act of 1954 is collected and received into the treasury of the State and is appropriated for the payment of the expenses of the State it cannot be earmarked for the administration of the Act and cannot therefore be deemed to be an imposition of the nature of a fee. The learned Advocate-General points out, and in my opini ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by, and to bear the same burden as are imposed upon, others in a like situation. It does not forbid discrimination with respect to things that are different or deprive the State of the power to resort to classification of subjects for legislative action or prohibit legislation which is limited to the territory within which it is to operate. It is open to the Legislature to decide for itself whether certain laws shall extend to the whole State or to one or more parts of the State, for there is nothing in Article 14 which requires uniformity throughout the State. All that is necessary is that the laws shall operate with substantial equality and uniformity on all persons and classes similarly situated within the territory to when they apply. A law is not void or inoperative because certain areas are included while others are omitted from the operation of the statute North Western Laundry v. Des Moines (1916) 239 US 486 (K), or because it imposes restrictions on the conduct of certain businesses in designated localities, Hadacheck v. Sebastian (1916) 239 U.S. 394 (L); and provisions and statutes establishing one system of laws in courts in one portion of the territory of the State ..... X X X X Extracts X X X X X X X X Extracts X X X X
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