Judgment

D.P. Mohapatra, J.—Leave granted in SLP (C) No. 12499 of 1999.

2. The controversy raised in all these appeals relates to validity of the revision of licence fee under the Andhra Pradesh Factories Rules, 1950 (hereinafter referred to as the ‘Rules’) which was introduced by the State Government by G.O.Ms. No. 154, E & F Deptt. Dated 26.7.1994. Since common questions of fact and law are involved in the cases they were heard together and they are being disposed of by this common judgment.

3. The appellants who are owners of factories located in the State of Andhra Pradesh challenged the levy of revised licence fee by filing writ petitions before the High Court of Andhra Pradesh. The challenge was on several grounds some of which are not relevant for the purpose of the present proceedings. Suffice it to state that the main grounds on which the revised licence fee was challenged were :

(i) that the Factories Act, 1948 (hereinafter referred to as the ‘Act’) does not impose licence fee as there is no charging section;

(ii) that the fee imposed amount to a fee on production of goods and therefore it is a ‘tax’. The State has no power to levy the tax;