THE HINGIR-RAMPUR COAL CO., LTD. AND OTHERS vs THE STATE OF ORISSA AND OTHERS

The Supreme Court upheld the constitutional validity of the Orissa Mining Areas Development Fund Act, 1952, stating that the cess imposed under Section 4 is a fee relatable to Entries 23 and 66 of List II of the Seventh Schedule of the Constitution. The Court clarified the distinction between a tax and a fee, emphasizing that a fee is levied for services rendered and must have an element of quid pro quo. The petitioners' arguments regarding the Act being ultra vires and repugnant to other Central Acts were rejected, affirming the State Legislature's competence to levy the cess.