Licensing and GST compliance for teer-counters must follow the new regime; private association cannot issue NOCs or collect tax.

The 2018 licensing regime for teer-counters was treated as mandatory, so earlier operators could continue only by obtaining a fresh licence and complying with prescribed distance conditions; authorities were also directed to inspect sites and shut unauthorised counters. Operators falling within the GST threshold were required to register and pay GST in accordance with law, with compliance to be verified during inspection. The respondent association had no legal authority to issue NOCs or licences for teer-counters or to collect tax on behalf of the tax department, and action could be taken against such unauthorised activity.

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Issues: (i) whether teer-counters could be allowed to operate without a fresh licence under the regulatory regime and in breach of the prescribed distance requirements; (ii) whether operators were required to obtain GST registration and pay GST where the statutory threshold was attracted; (iii) whether the respondent association had any authority to issue NOCs or collect tax on behalf of the tax department.

Issue (i): whether teer-counters could be allowed to operate without a fresh licence under the regulatory regime and in breach of the prescribed distance requirements.

Analysis: The licensing regime under the 2018 Act was treated as mandatory after repeal of the earlier framework. Teer-counters that had earlier operated under old licences could continue only after obtaining fresh licence under the new Act and complying with the statutory conditions, including the distance requirement prescribed for counters. The Court also required the tax authorities to inspect the sites periodically and to close any counter found operating without the requisite authorisation.

Conclusion: The issue was decided against unlicensed operation and in favour of enforcement of the licensing and distance requirements.

Issue (ii): whether operators were required to obtain GST registration and pay GST where the statutory threshold was attracted.

Analysis: The order recognised that operators falling within the GST regime had to obtain registration and discharge the tax liability in accordance with law. The State was directed to verify compliance during inspection and to ensure that due GST was paid wherever registration was required.

Conclusion: The requirement of GST registration and payment was affirmed in favour of statutory compliance.

Issue (iii): whether the respondent association had any authority to issue NOCs or collect tax on behalf of the tax department.

Analysis: The Court held that the association had no legal authority to issue any NOC or licence for running teer-counters and also no authority to collect tax on behalf of the Commissioner of Taxes. The order further permitted action in accordance with law if such unauthorised activity was found.

Conclusion: The association was held to have no such authority.

Final Conclusion: The writ petition succeeded to the extent that the authorities were directed to enforce the licensing, regulatory, and tax compliance framework for teer-counters and to prevent unauthorised collection or authorisation by the association.

Ratio Decidendi: When a regulated activity is continued under a fresh statutory regime, prior licences do not authorise operation unless the new licensing and compliance requirements are satisfied, and no private association can usurp statutory functions of licensing or tax collection without legal authority.

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