Tax levy and collection distinction: collection is ordinarily a corollary of valid levy, with the issue referred for reconsideration.

In taxing law, levy refers to the assessment or imposition of cess, while collection concerns the realisation of the tax so imposed. The text states that collection is ordinarily a natural corollary of a valid levy and that it is difficult to reconcile a view permitting levy but forbidding recovery of unpaid amounts. It records disagreement with an earlier view that validated levy could not support collection of sums not yet recovered, and notes that the correctness of that view was referred to a Larger Bench for authoritative reconsideration.

---

---

Issues: Whether the Validation Act could validate the levy of cess but still render collection of unpaid amounts impermissible.

Analysis: The order examined the distinction between levy and collection in taxing law and noted that levy involves assessment or imposition, while collection is the realisation of the tax so imposed. It reasoned that collection is a natural corollary of a valid levy and that it is difficult to reconcile a conclusion that levy is permissible but collection is not. The order therefore expressed disagreement with the earlier view that validated levy could not support collection of amounts not already recovered.

Conclusion: The Bench referred the correctness of the earlier conclusion to a Larger Bench for determination.

Final Conclusion: The matter was not finally decided on the substantive question and was placed before a Larger Bench for authoritative reconsideration.

Ratio Decidendi: In taxing matters, collection is ordinarily a corollary of levy, and the validity of a levy cannot readily coexist with a rule forbidding collection of unpaid amounts.

---