INDIAN MICA & MICANITE INDUSTRIES LTD. vs STATE OF BIHAR & ORS

The Supreme Court examined the validity of Rule 111 under Section 90 of the Bihar and Orissa Excise Act, 1915, which imposed a fee for a license to possess denatured spirit. The Court held that while the State has the power to levy such a fee, it must be justified as a quid pro quo for services rendered. The Court found that the services provided by the State did not correlate sufficiently with the fee charged, leading to the conclusion that the levy was excessive and unjustified.