Supreme Court of India
M/s. Gupta Modern Breweries v. State of Jammu & Kashmir & Ors.
INSC stands for INDIAN SUPREME COURT. A neutral citation scheme assigned by the Court itself, so a judgment can be cited without depending on a commercial law reporter. INSC is the neutral citation scheme assigned by the Supreme Court, so a judgment can be cited without depending on a commercial law reporter.
2 Supreme Court benches have cited this judgment.
What the Court ordered
We hold that: (a) Rule 17 has no statutory backing and it is in excess of the Act. (b) It is manifestly unjust and arbitrary. (c) Provision of Rule 17 is clearly a tax and not a fee. (d) Imposition of tax or fee on the citizens for the services that the State renders to itself and not the tax payers is clearly impermissible, arbitrary and unjustifiable.
Judgment, page 14
From the headnote
Taxation: Jammu and Kashmir Distillery Rules, 1946-Rule 17-Stipulating that expenditure on salary of excise department posted at the appellant's distillery to be recovered from the appellant-Reasonableness of-Held: Unreasonable and arbitrary-Excise department rendering services to ensure that the denaturing of spirit is done properly by manufacturer and also for specifically seeing that the denatured spirit does not go out of hands, either of distillery owner or retail seller-As there is no correlation between expenditure incurred by government and fees sought to be charged under Rule 17,
Authorities it was built on
Where later benches applied it
- 2024 Gaurav Kumar v. Union of India and Ors.
- 2015 Kandivali Cooperative Industrial Estate and Another v. Municipal Corporation of Greater Mumbai and Others
Of those, 1 referred to · 1 mentioned
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