KALYAN CHEMICALS vs GOVERNMENT OF A.P. .

The Supreme Court upheld the legality of the Administrative Fee imposed on industrial alcohol under the Andhra Pradesh Denatured Spirit and Denatured Spirituous Preparations Rules, 1971, as amended by G.O.M. No. 147. The Court reiterated that the State has the authority to levy regulatory fees under Entry 8 of List II of the Constitution, provided the primary purpose is regulation rather than revenue generation. The Appellant's challenge to the amendment as arbitrary and ultra vires was dismissed, affirming the High Court's decision to allow the fee collection.