{"id":221975,"date":"2007-12-01T00:00:00","date_gmt":"2007-11-30T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/c-abdul-latheef-vs-state-of-kerala-on-1-december-2007"},"modified":"2019-03-03T15:13:51","modified_gmt":"2019-03-03T09:43:51","slug":"c-abdul-latheef-vs-state-of-kerala-on-1-december-2007","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/c-abdul-latheef-vs-state-of-kerala-on-1-december-2007","title":{"rendered":"C.Abdul Latheef vs State Of Kerala on 1 December, 2007"},"content":{"rendered":"<div class=\"docsource_main\">Kerala High Court<\/div>\n<div class=\"doc_title\">C.Abdul Latheef vs State Of Kerala on 1 December, 2007<\/div>\n<pre>       \n\n  \n\n  \n\n \n \n  IN THE HIGH COURT OF KERALA AT ERNAKULAM\n\nWA No. 1551 of 1998(A)\n\n\n\n1. C.ABDUL LATHEEF\n                      ...  Petitioner\n\n                        Vs\n\n1. STATE OF KERALA\n                       ...       Respondent\n\n                For Petitioner  :SRI.K.M.SATHYANATHA MENON\n\n                For Respondent  :ADVOCATE GENERAL\n\nThe Hon'ble the Chief Justice MR.H.L.DATTU\nThe Hon'ble MR. Justice K.M.JOSEPH\n\n Dated :01\/12\/2007\n\n O R D E R\n                       H.L.DATTU, C.J. &amp; K.M.JOSEPH, J.\n                            ------------------------------------------\n                        W.A.Nos.1525 of 1997, 1551 of 1998,\n                     1221, 1261, 1287, 1385 &amp; 1658 of 2004 &amp;\n                    W.P.(C) Nos.17923, 24041 &amp; 31561 of 2004\n                            ------------------------------------------\n                     Dated, this the 1st day of December, 2007\n\n                                    JUDGMENT\n<\/pre>\n<p>H.L.Dattu, C.J.\n<\/p>\n<p>        In all these writ appeals and writ petitions the appellants\/petitioners are<\/p>\n<p>calling in question certain actions of the respondent authorities, inter alia,<\/p>\n<p>demanding payment of entry tax under the provisions of the Kerala Tax on<\/p>\n<p>Entry of Goods into Local Areas Act, 1994 (&#8216;the Act&#8217; for short).           All these<\/p>\n<p>demands were made pursuant to the charging provision under the said Act.<\/p>\n<p>The said charging provision is held to be unconstitutional by a Division Bench<\/p>\n<p>of this Court in the case of <a href=\"\/doc\/14679395\/\">Thressiamma L.Chirayil v. State of Kerala<\/a> (2007 (1)<\/p>\n<p>KLT 303). In the said decision the Division Bench of this Court has observed<\/p>\n<p>as under:\n<\/p>\n<blockquote><p>                 &#8220;A compensatory tax is levied on an individual as a<\/p>\n<p>         member of a class and a fee is levied on an individual as<\/p>\n<p>         such. The concept of compensatory tax is a judicially evolved<\/p>\n<p>         principle and could be an exception to the provisions of<\/p>\n<p>         Art.301. In the case of a tax there is no identification of a<\/p>\n<p>         specific benefit and even if such identification is there it is not<\/p>\n<p>         capable of direct measurement. A tax is a payment where<\/p>\n<p>         the special benefit, if any, is converted into common burden.<\/p><\/blockquote>\n<p>         On the other hand, a fee is based on the &#8220;principle of<\/p>\n<p>         equivalence&#8221;. In the case of a fee or compensatory tax, the<\/p>\n<p>         &#8220;principle of equivalence&#8221; applies and the basis of a fee or a<\/p>\n<p>         compensatory tax is the same. The main basis a fee or a tax,<\/p>\n<p>         even if there is any benefit, the same is incidental to the<\/p>\n<p>         government action and even if such benefit results from the<\/p>\n<p>         government action, the same is not measurable. Fee or a<\/p>\n<p>W.A.No.1525\/1997, etc.<br \/>\n<span class=\"hidden_text\">                                               2<\/span><\/p>\n<p>         compensatory tax has to be broadly proportional and not<\/p>\n<p>         progressive. Levy of entry tax on goods imported from<\/p>\n<p>         other State to the State of Kerala and from abroad is not<\/p>\n<p>         compensatory in nature since the State Government<\/p>\n<p>         could not discharge its burden by placing materials before<\/p>\n<p>         Court that payment of levy of entry tax is reimbursement\/<\/p>\n<p>         recompense for the quantifiable\/measurable benefit<\/p>\n<p>         provided or to be provided. Demand and collection of<\/p>\n<p>         entry tax under the Kerala Tax on Entry of Goods into<\/p>\n<p>         Local Areas Act, 1994 is illegal, unauthorized and<\/p>\n<p>         violative of Art.301 of the Constitution of India.&#8221;<\/p>\n<p>       2. Since the charging provision itself has been struck down by this<\/p>\n<p>Court, the question of demanding for payment of entry tax under the Act<\/p>\n<p>would not arise. Accordingly, we dispose of all these writ appeals and writ<\/p>\n<p>petitions.\n<\/p>\n<p>       3. Consequently, all pending interlocutory applications also stand<\/p>\n<p>closed.\n<\/p>\n<p>       Ordered accordingly.\n<\/p>\n<\/p>\n<p>                                                            (H.L.DATTU)<br \/>\n                                                          CHIEF JUSTICE<\/p>\n<p>                                                            (K.M.JOSEPH)<br \/>\n                                                              JUDGE<br \/>\nvns<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Kerala High Court C.Abdul Latheef vs State Of Kerala on 1 December, 2007 IN THE HIGH COURT OF KERALA AT ERNAKULAM WA No. 1551 of 1998(A) 1. C.ABDUL LATHEEF &#8230; Petitioner Vs 1. STATE OF KERALA &#8230; Respondent For Petitioner :SRI.K.M.SATHYANATHA MENON For Respondent :ADVOCATE GENERAL The Hon&#8217;ble the Chief Justice MR.H.L.DATTU The Hon&#8217;ble MR. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,21],"tags":[],"class_list":["post-221975","post","type-post","status-publish","format-standard","hentry","category-high-court","category-kerala-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>C.Abdul Latheef vs State Of Kerala on 1 December, 2007 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/c-abdul-latheef-vs-state-of-kerala-on-1-december-2007\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"C.Abdul Latheef vs State Of Kerala on 1 December, 2007 - Free Judgements of Supreme Court &amp; 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