SC: Hindu Daughter-In-Law Widowed After Her Father-In-Law’s Death is Entitled to Maintenance  ||  SC: Vendor Remains a Necessary Party in Specific Performance Suits Even After Transferring Property  ||  Raj HC: Having Different Age Criteria For Contractual and Regular Appointments is Unconstitutional  ||  Delhi HC: Registered Property Title Prevails over Claims Based on Oral Family Settlements  ||  Gauhati HC: Only A Family Court Can Grant A Divorce under Muslim Law, Not A Civil Judge  ||  Del HC: Courts Cannot Compel Lawyers to Disclose Sources of Documents Filed on Clients' Instructions  ||  SC Explains When Shares Received After Company Amalgamation are Taxable as Business Income  ||  SC: Excavators, Dumpers Etc Used Within Factories aren’t Motor Vehicles For Road Tax Purposes  ||  SC: Complaints Alleging Fraud under Companies Act Can Be Filed Only By SFIO, Not By Private Parties  ||  SC: Preventive Detention Cannot Override Bail and Requires Proof of a Threat to Public Order    

State of Tamil Nadu and Ors. v. TVL. South Indian Sugar Mills Assn. and Ors. - (Supreme Court) (12 Aug 2015)

Fee collected by State from industry must bear reasonable nexus to curbing illegal activity in the same industry

MANU/SC/0853/2015

Excise

Fee and excise duty collected from an industry to prevent illegal activities which have no causal connection with that industry will 'metamorphose into a tax'. In a case where producers of industrial alcohol questioned the legality of a Re.1 per bulk litre fee charged by the state, the Court upheld the imposition of the fee. Recovery of the fee would be permissible, so long as expenses incurred by the state government are for ensuring that industrial alcohol is not used as potable alcohol.

Relevant : State of U.P. v. Vam Organic Chemicals Ltd. MANU/SC/0833/2003 B.S.E. Brokers' Forum, Bombay and Ors. v. Securities and Exchange Board of India and Ors. MANU/SC/0069/2001 Synthetics and Chemicals Ltd. v. State of U.P. MANU/SC/0595/1989

Tags : FEE   TAX   CAUSAL RELATIONSHIP   QUID PRO QUO  

Share :        

Disclaimer | Copyright 2026 - All Rights Reserved