NATIONAL ADVERTIISING CO Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) HEARD learned counsel for the parties finally.

(2.) THE intra-Court appeal has been preferred questioning increase in license fees from Rs. 20/- to Rs. 35/- vide notification dated 12.8.2002 issued by the State Government. THE same has been held to be regulatory by the single Bench and not compensatory and it cannot be termed as tax. THE amendment made vide notification dated 12.8.2002 has been held to be constitutionally valid.

(3.) THE main question for consideration is as to whether the fees can be said to be regulatory or compensatory? It is not in dispute that it is open for the Municipal Corporation to impose fees. Its enhancement has been questioned on the ground that it is compensatory. Thus it was necessary to establish quid pro quo. It was also submitted that enhancement made was illegal and in contravention of the decision rendered by the Division Bench of this Court in Jaipur Advertising Service (supra).