https://www.taxtmi.com/caselaws?id=171653 A licence fee imposed on lodging houses, hotels and allied eating establishments was held to be a regulatory-cum-compensatory fee, not a tax, because the trades were subject to hygiene, sanitation, safety, inspection and supervision controls and the receipts were earmarked for related municipal purposes. The Court held that strict quid pro quo was not required where the levy had a substantial regulatory element. It further upheld the enhanced fee as neither excessive nor lacking reasonable nexus with the municipal burden, accepting graded rates linked to rent and increased administrative and sanitary costs. The challenge to validity therefore failed. en-us Wed, 20 Jan 1999 00:00:00 +0530 Tue, 28 Jul 2015 14:50:37 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=171653 A licence fee imposed on lodging houses, hotels and allied eating establishments was held to be a regulatory-cum-compensatory fee, not a tax, because the trades were subject to hygiene, sanitation, safety, inspection and supervision controls and the receipts were earmarked for related municipal purposes. The Court held that strict quid pro quo was not required where the levy had a substantial regulatory element. It further upheld the enhanced fee as neither excessive nor lacking reasonable nexus with the municipal burden, accepting graded rates linked to rent and increased administrative and sanitary costs. The challenge to validity therefore failed. Case-Laws Indian Laws Wed, 20 Jan 1999 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=171653