A.B. ABDULKADIR AND OTHERS versus THE STATE OF KERALA AND ANOTHER (AND CONNECTED APPEALS)

A.B. ABDULKADIR AND OTHERS versus THE STATE OF KERALA AND ANOTHER (AND CONNECTED APPEALS)

The rules framed under the Cochin Tobacco Act, 1084 (M.E.) and the Travancore Tobacco Regulation, 1087 (M.E.), requiring licences for storage and sale of tobacco and payment of licence fees were provisions corresponding to the Central Excises and Salt Act, 1944, and were superseded on April 1, 1950, by section 13(2) of the Finance Act, 1950. Consequently, the new Rules framed in August 1950 and January 1951 for issuing licences and prescribing fees for storage of tobacco in the respective areas were invalid ab initio.

Parties
Appellants: A.B. Abdulkadir and Others; Respondents: The State of Kerala and Another
Jurisdiction
India
Judgment Date
24 January 1962
Procedural Posture
Civil Appeals / Appeals From the Judgment and Order Dated November 8, 1957, of the Kerala High Court in O.ps. Nos. 70 and 71 of 1956(k) and 2, 6 and 7 of 1955 E.
Outcome
Appeals allowed
Legal Topics
Excise Duty, Licence for Storage, Repeal of State Law, Corresponding Law Under Central Act
Tax Law Administrative Law Constitutional Law Excise Duty Licence for Storage Repeal of State Law Corresponding Law Under Central Act

Case Brief

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Parties

A.B. Abdulkadir and Others

Appellants

The State of Kerala and Another

Respondents

Procedural Posture

Civil Appeals / Appeals From the Judgment and Order Dated November 8, 1957, of the Kerala High Court in O.ps. Nos. 70 and 71 of 1956(k) and 2, 6 and 7 of 1955 E.

Legal Issues

  1. 1 Whether the Cochin Tobacco Act, 1084 (M.E.) and Travancore Tobacco Regulation, 1087 (M.E.) were laws corresponding to the Central Excises and Salt Act, 1944, and therefore stood repealed on April 1, 1950, by section 13(2) of the Finance Act, 1950.
  2. 2 Validity of new Rules and notifications issued under the repealed Acts for licensing and collection of licence fees.

Ratio Decidendi

The rules framed under the Cochin Tobacco Act, 1084 (M.E.) and the Travancore Tobacco Regulation, 1087 (M.E.), requiring licences for storage and sale of tobacco and payment of licence fees were provisions corresponding to the Central Excises and Salt Act, 1944, and were superseded on April 1, 1950, by section 13(2) of the Finance Act, 1950. Consequently, the new Rules framed in August 1950 and January 1951 for issuing licences and prescribing fees for storage of tobacco in the respective areas were invalid ab initio.

Court Disposition

Appeals allowed

Orders

  • The order passed by the High Court is set aside.
  • A writ will issue declaring that the levy of licence fee under the notification dated January 25, 1951, is without authority of law, and the State of Travancore-Cochin is to forbear from levying and collecting the licence fee.