STATE OF U.P. . vs M/S. LALTA PRASAD VAISH

The Supreme Court upheld the Allahabad High Court's decision declaring the licence fee levied on the sale of specially denatured spirit under the Uttar Pradesh Excise Act, 1910 as illegal. The Court found that the fee was neither regulatory nor compensatory, as no services were rendered to justify such a fee. The Court reiterated that the imposition of the fee was outside the legislative powers of the State concerning denatured spirit, following the precedent set in State of U.P. Vs. Vam Organic Chemicals Ltd (2004).