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Challenge to the validity of administrative surcharge on export of tapioca under Kerala Tapioca Manufacture and Export (Control) Order, 1966. Analysis: The judgment involves multiple civil appeals challenging the validity of administrative surcharge on the export of tapioca by the State Government of Kerala under the Kerala Tapioca Manufacture and Export (Control) Order, 1966. The respondents, who are dealers in tapioca, filed writ petitions seeking to invalidate the orders and claim refunds. The Kerala High Court allowed the writ petitions, leading to the appeals. The State Government imposed administrative charges under a scheme published in April 1966, which the respondents argued as ultra vires. The State contended that the charge was a license fee for regulating tapioca export under the Essential Commodities Act, 1955. The State argued that the administrative charge was a fee related to the grant of export permits and fell within the police powers of the State. However, the Kerala High Court found the charge to be invalid as it lacked correlation with the services provided by the State. The Court did not delve into the correctness of this view but focused on the authorization granted to the State Government under the Central notification of June 1966. The Court assumed in favor of the State that it had the power to levy fees for regulating trade but held the impugned levies as invalid as they were not related to license fees or permits. The Court emphasized that the administrative surcharge was not a license fee for regulating trade or granting permits under the Essential Commodities Act. The orders imposing the charge were independent of the Tapioca Export Control Order, and the State lacked the power to impose such charges on exports. The Court rejected the State's argument that the charge was akin to a license fee under the Act. The Court noted discrepancies in the State's arguments in the petitions and during the hearing, leading to the conclusion that the surcharge was unauthorized and illegal. The Court upheld the Kerala High Court's decision, dismissing the appeals and directing the State to impose taxes or fees lawfully if required for tapioca exports. In conclusion, the Supreme Court upheld the Kerala High Court's decision, ruling that the administrative surcharge levied by the State Government on tapioca exports was unauthorized and invalid. The Court directed the State to explore lawful avenues for imposing taxes or fees on exports and dismissed the appeals with costs.
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