https://www.taxtmi.com/caselaws?id=169583 A regulatory fee must bear a real and reasonable correlation with the cost of the regulatory service or burden. On the facts discussed, the additional levy under Rule 3(a) on denatured spirit was unsupported by any distinct expenditure, staff deployment, or separate regulatory burden beyond that already covered under Rule 2, so it was treated as a tax in substance. The analysis also states that the State could regulate industrial alcohol only to prevent diversion into potable liquor and could not justify a further levy on denatured spirit without material showing a separate quid pro quo. The impugned exaction was therefore unsustainable, and relief followed for the assessees. en-us Fri, 17 Oct 2003 00:00:00 +0530 Wed, 09 Dec 2015 11:05:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=169583 A regulatory fee must bear a real and reasonable correlation with the cost of the regulatory service or burden. On the facts discussed, the additional levy under Rule 3(a) on denatured spirit was unsupported by any distinct expenditure, staff deployment, or separate regulatory burden beyond that already covered under Rule 2, so it was treated as a tax in substance. The analysis also states that the State could regulate industrial alcohol only to prevent diversion into potable liquor and could not justify a further levy on denatured spirit without material showing a separate quid pro quo. The impugned exaction was therefore unsustainable, and relief followed for the assessees. Case-Laws Indian Laws Fri, 17 Oct 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=169583