EPIAS AND COMPANY Vs. SALES TAX OFFICER

JUDGEMENT

(1.) PETITIONERS in these cases challenge S.14(1), 14(1A) and 14(5) of the Kerala General Sales Tax Act, 1963 (hereinafter referred to as 'The Act') as unconstitutional and invalid. All the petitioners herein are dealers registered under the Kerala General Sales Tax Act and under the Central Sales Tax Act (in short 'Central Act'). S.13 of the Act requires compulsory registration of every dealer whose total turnover exceeds a particular limit. At present, Rs.1 lakh is the limit prescribed under the Act. S.14(1) prescribes the fees for registration. S.14(1) after the amendment of the Act by Act 17 of 1988 with effect from 1.4.1988 with enhancement of rates pending till Act 23 of 1996 is as follows:

(2.) THE contention of the petitioners is that charging of registration fee at such an exorbitant rate is unwarranted and illegal and that the said levy is opposed to all constitutional requirements and conditions for levy of fees for registration. State cannot impose such huge amounts in the guise of fee. In any event, the exorbitant increase in the registration fee is arbitrary and illegal and violative of Art.14 of the Constitution of India. S.14(1A) as inserted by Act 8 of 1992 reads as follows:

(3.) IN this case there is no dispute between the parties that what is levied in the form of licence fee is a fee and not a tax. The Government Pleader submitted that what is collected is a fee. In the counter affidavit also Government justifies the imposition of licence fees as a fee and not as tax. Therefore, we need not go at length whether the levy is tax or fee.