MAHAVEER ASSOCIATES Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) PETITIONERS in all the writ petitions seek the following relief :

(2.) TO begin with, it has to be borne in mind that the challenge made is in regard to the quantum of the registration fee, There is no challenge as such, as to whether the respondents are entitled to levy any licence fee at all on the ground that any such levy assumes the character of tax and not fee. There is no prayer made in these writ petitions to strike down the levy as it partakes of the character of tax. Nevertheless, in view of the forceful arguments advanced by Mr. B. P. Gandhi, learned counsel for the petitioners in this behalf as well, I would consider the said contention as well.

(3.) MR. B. P. Gandhi, learned counsel for the petitioners, strenuously contended that the levy of tax and not fee as such it is not sustainable in law. He submitted, in the light of the principles laid down by the Supreme Court in the decisions reported in Commissioner, Hindu Religious endowments, Madras v. Sri Lakshmindra Thirtha Swamiar of Shri Shirur Mutt AIR1954 SC 282 , [1954 ]1 SCR1005 , Kewal Krishan Puri v. State of punjab AIR1980 SC 1008 , (1980 )1 SCC416 , [1979 ]3 SCR1217 and krishi Upaj Mandi Samiti v. Orient Paper and Industries Ltd. JT1994 (7)SC 414 , 1994 (4 )SCALE914 , (1995 )1 SCC655 , [1994 ]supp5 SCR392 , the levy of licence fee in the instant case amounts to levy of tax, and there is no authority for the same. He contends that there is no clear principle at all in quantifying the levy of fee and as such the same is totally arbitrary.