https://www.taxtmi.com/caselaws?id=174043 A licence fee imposed under the Andhra Pradesh Factories Rules, 1950 was treated as regulatory, because it related to registration, licensing, renewal, inspection and supervision of factories. Strict quid pro quo in the compensatory sense was therefore not required, but the levy still needed a reasonable correlation with the regulatory object. The Court accepted that correlation on the material available, yet found the steep enhancement from the existing rate to the revised maximum unsupported by adequate justification. The increase was held arbitrary and excessive in the form challenged, and the impugned revision could not be sustained. The decision was given prospective effect, with no refund of amounts already collected. en-us Thu, 28 Sep 2000 00:00:00 +0530 Tue, 29 Sep 2015 10:34:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=174043 A licence fee imposed under the Andhra Pradesh Factories Rules, 1950 was treated as regulatory, because it related to registration, licensing, renewal, inspection and supervision of factories. Strict quid pro quo in the compensatory sense was therefore not required, but the levy still needed a reasonable correlation with the regulatory object. The Court accepted that correlation on the material available, yet found the steep enhancement from the existing rate to the revised maximum unsupported by adequate justification. The increase was held arbitrary and excessive in the form challenged, and the impugned revision could not be sustained. The decision was given prospective effect, with no refund of amounts already collected. Case-Laws Indian Laws Thu, 28 Sep 2000 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=174043