Constitution of India

— Arts. 265, 246 and Sch. VII List II Entries 66 and 54 — Fees, cesses and taxes — Nature and scope — Cess — Nature of: whether a tax or fee — Held, ordinarily it is a tax which generates revenue to be utilised for a specific purpose — However, sometimes it may be in reality a fee depending upon its nature — Cess levied by S. 7(1) of A.P. Rural Development Act, 1996 on purchase of goods for rendering to the rural public the services of rural development as enumerated in S. 9 thereof, held, is a fee — Hence, within the legislative competence of the State Legislature — Arguments to the contrary based on the assumption that it was a tax, rejected — However, since the said provision for the levy of cess had been challenged exclusively on the ground that no specific service was rendered to the particular cess payer, liberty granted to the petitioners (or any other person concerned) to challenge S. 9 by making a specific averment in a fresh petition to the effect that there was no broad correlation between the total amount of cess realised every year and the total services rendered every year in accordance with S. 9, (2006) 6 SCC 763-A

Constitution of India

— Arts. 265, 246 and Sch. VII List II Entries 66 and 54 — Fees, cesses and taxes — Tax and fee — Difference between, restated, (2006) 6 SCC 763-B

Constitution of India

— Art. 265 — Fees, cesses and taxes — Nature and scope — Fee — Change in the concept of — Case-law reviewed — Held, the earlier concept of fee has undergone a sea change and rendering of some specific service to particular payer of fee is no longer considered necessary to sustain the levy of fee — Even a broad and general correlationship between the totality of the fee imposed and the totality of the expenses on the service rendered would suffice, (2006) 6 SCC 763-C