NAGAR MAHAPALIKA VARANASI vs DURGA DAS BHATTACHARYA & ORS.

The Supreme Court held that under Section 294 of the U.P. Municipalities Act, 1916, the fees imposed for licenses are meant for regulation and services, not as a tax. The Court found that the fees charged to rickshaw owners and drivers were ultra vires as they did not provide sufficient quid pro quo for the services rendered, and thus, the imposition was illegal. The judgment clarified that if a fee is predominantly a tax, it must follow the mandatory procedures outlined in Sections 131 to 135 of the Act.