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IN THE HIGH COURT OF JUDICATURE AT MADRAS
M.DHANDAPANI
Sundram Fasteners Ltd., Rep. by its Chief Financial Officer – Appellant
Versus
Special Officer/ Asst. Director (Audit) – Respondent
| Table of Content |
|---|
| 1. factual background of licensing fee demand and dispute over arbitrary enhancement. (Para 1 , 2 , 3) |
| 2. conflicting arguments between petitioner's claim of arbitrariness and respondent's claim of statutory power to augment revenue. (Para 4 , 5) |
| 3. licensing fees require statutory authorization and must possess a rational correlation to service provided, prohibiting arbitrary hikes. (Para 6 , 7 , 8) |
| 4. quashing of unauthorized and unsubstantiated demand notices for license fee recovery. (Para 9 , 10) |
ORDER :
M.DHANDAPANI, J.
This petition has been filed challenging the impugned order dated 24.09.2019 passed by the 1st respondent and consequential Demand Notice dated 22.06.2020 issued by the 2nd respondent, and seeks to quash the same.
2.The learned counsel appearing for the petitioner would submit that, the petitioner is a company registered under the Companies Act and is engaged in the business of manufacturing fasteners, auto components, power train components and various critical high-precision engineering components for the automotive and other sectors. The Tamil Nadu District Municipalities Act (“the Act”) mandates the local bodies to provide certain services and col
Licence fees imposed by local statutory bodies must be correlated to the cost of services provided and cannot be arbitrarily increased for the sole purpose of revenue generation without following sta....
The main legal point established in the judgment is that unless an order passed by a lower court is challenged and quashed, there is no basis for seeking a command to restrain a particular action.
Sub-section (2) of section 479 upheld; Commissioner’s power to fix advertisement license fees with Corporation sanction not excessive delegation, as guidelines exist in statute, policy, and democrati....
License fees can be regulatory rather than tied directly to specific services, requiring reasonable correlation with total expenses incurred.
Municipal Boards must justify licence fees based on actual services rendered; excessive fees may be deemed an illegal tax.
Even Though a faint allegation is made by the petitioner that the quantification in the demand is not proper, it is not supported by any cogent and material evidence, and therefore the Panchayat is e....
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