M/S SOMAIYA ORGANICS (INDIA) LTD. ANR. vs STATE OF UTTAR PRADESH

The Supreme Court held that the vend fee levied under the U.P. Excise Act, 1910, was invalidated prospectively by the judgment in Synthetics and Chemicals Ltd. v. State of U.P. on 25th October 1989, which overruled a prior decision upholding the levy. The Court clarified that amounts not collected due to interim orders during litigation could not be recovered post the invalidation date. The judgment emphasized that the State's authority to collect vend fees was limited to the period before the prospective declaration of invalidity, thus ruling in favor of the appellant, Somaiya Organics (India) Ltd.