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Issues Involved:
1. Legality of the permit/transport fee imposed by the State Government. 2. Competence of the State Government to levy fees under the Punjab Excise Act, 1914. 3. Whether the fee levied was a tax or a fee. 4. Requirement of quid pro quo for levying fees. 5. Validity of the notifications enhancing the license fee. Detailed Analysis: 1. Legality of the Permit/Transport Fee: The petitioner challenged the imposition of permit/transport fees on the transportation of Indian Made Foreign Liquors (IMFS) and beers, arguing that prior to 1.4.1996, no such fee was required. The fee was first levied as per the announcement for excise auctions for the year 1996-97. The petitioner was asked to deposit substantial amounts as permit fees for the years 1996-97 and 1998-99, which they contested as illegal and without jurisdiction. 2. Competence of the State Government: The State Government asserted its competence to levy fees under Entry No. 8 of List II of the Seventh Schedule of the Constitution, which pertains to intoxicating liquors. The State argued that the fee was regulatory in nature and was levied for services rendered by the State in regulating the import and transport of liquor. The government maintained that it had the exclusive privilege to trade in liquor and that the fees were justified to cover the expenses incurred in rendering these regulatory services. 3. Tax vs. Fee: The petitioner contended that the fee was in the nature of a tax, which the State Government was not competent to levy. However, the State Government clarified that the amount being levied was a fee, not a tax, and thus fell under the State's jurisdiction. The court had to consider whether the fee could be justified under the powers vested in the State Government. 4. Requirement of Quid Pro Quo: The petitioner argued that there must be a quid pro quo, i.e., a direct correlation between the fee charged and the services rendered by the State. They cited several Supreme Court decisions to support their claim that the fee lacked such correlation and was, therefore, unconstitutional. The State countered that it was not necessary to provide detailed proof of the expenses incurred for the services rendered. The court acknowledged that while earlier judgments required a quid pro quo, later decisions indicated that it was not a strict necessity. 5. Validity of Notifications Enhancing License Fee: The petitioner also challenged the notifications that enhanced the license fees, arguing that they were arbitrary and unconstitutional. The State defended the notifications, stating that the fee enhancements were within their legislative competence and were necessary to cover the additional regulatory costs. The court noted that the fees were part of a contractual agreement between the petitioner and the State and that the State had the right to enhance fees as per the terms of the license. Conclusion: The court dismissed both writ petitions, upholding the State Government's competence to levy the permit/transport fees and the enhanced license fees. The court found that the fees were regulatory in nature and justified under the State's powers. The notifications issued by the State Government were deemed valid and within legislative competence. The petitions were dismissed with no order as to costs.
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