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1990 Supreme(SC) 107
SUPREME COURT OF INDIA
SABYASACHI MUKHARJI, CJI., K.N. SAIKIA AND M.M. PUNCHHI, JJ.
SHAHID HUSSAIN AND ANOTHER - Petitioners;
Versus
STATE OF U.P. AND OTHERS - Respondents.
WPs Nos. 7452 of 1981 and 3571 of 1982,
decided on February 26, 1990
The court applied the principle of prospective overruling to declare a vend fee levy bad prospectively, resulting in the quashing of a recovery order for the specified amount.
Headnote:(A) Taxation - Levy of vend fee - Validity of levy - Levy declared bad prospectively based on judicial precedent - Recovery order quashed.
Facts of the case:
Petitioners challenged a recovery order for a sum of Rs 68,200 issued towards vend fee for the period from 9-4-1975 to 11-7-1978.
Findings of Court:
The levy is declared to be bad prospectively. Consequently, the recovery order is quashed, and the respondents are directed not to recover the amount from the petitioners.
Issues: Whether the levy of vend fee for the period from 9-4-1975 to 11-7-1978 was valid and whether the recovery order for Rs 68,200 should be quashed.
Ratio Decidendi: In accordance with the precedent established by the court in a previous matter, the levy is declared bad prospectively, leading to the quashing of the recovery order.
Result: Writ petitions allowed prospectively.
Legal Category Hierarchy
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administrative law
-
taxation
- levies
-
taxation
-
practice and procedure
- writ jurisdiction
ORDER
In view of the judgment of this Court in Synthetics and Chemicals Ltd. v. State of U.P.1 these writ petitions are allowed prospectively and the levy is declared to be bad prospectively. Since no refund is claimed, there will be an order in terms of prayers (1) and (2) of the writ petitions viz. the recovery order issued by the Excise Inspector dated 14-9-1981 for a sum of Rs 68,200 against the petitioners is quashed and the respondents are directed not to recover the amount of Rs 68,200 from the petitioners towards vend fee for the period from 9-4-1975 to 11-7-1978.
