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Kalyan Chemicals v. Government of A.P. and Ors. - (Supreme Court) (12 Aug 2015)

Reasonableness of fee depends on facts of case and appreciation of previous fee with passage of time

MANU/SC/0854/2015

Excise

The Supreme Court rejected the claim that collection of a gallonage fee by state at the rate of Re.1 per bulk litre was illegal, arbitrary and without justification in the non-rendering of any service. It added, the state had the authority to impose the fee retrospectively, and in its determination found Re.1 per bulk litre to be reasonable and not excessive.

Relevant : Synthetics and Chemicals Limited v. State of U.P. MANU/SC/0595/1989 Vam Organics Chemicals Ltd. v. State of U.P. MANU/SC/1076/1997

Tags : EXCISE FEE EXCESSIVE PASSAGE OF TIME

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