NAGRIK UPBHOKTA M. MANCH versus UNION OF INDIA AND ORS.

NAGRIK UPBHOKTA M. MANCH versus UNION OF INDIA AND ORS.

The collection of rounding off charges by the State Government/Collectors for kerosene, in the absence of statutory authority under the Essential Commodities Act, 1955, the Kerosene Order, 1993, or any other law, is unauthorized, amounts to unconstitutional taxation in violation of Article 265 of the Constitution, and is therefore ultra vires and void.

Parties
Appellant: Nagrik Upbhokta M. Manch; Respondents: Union of India and Others
Jurisdiction
India
Judgment Date
02 May 2002
Procedural Posture
Civil Appeal / Supreme Court Decision on Appeal From High Court Judgment
Outcome
Appeal allowed; High Court judgment set aside.
Legal Topics
Essential Commodities, Price Fixation, Taxation, Public Distribution System, Delegation of Powers, Ultra Vires, Rounding Off Charges
Constitutional Law Administrative Law Consumer Protection Law Essential Commodities Price Fixation Taxation Public Distribution System Delegation of Powers +2 more

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Parties

Nagrik Upbhokta M. Manch

Appellant

Union of India and Others

Respondents

Procedural Posture

Civil Appeal / Supreme Court Decision on Appeal From High Court Judgment

Legal Issues

  1. 1 Whether the State Government/Collectors can levy and collect 'rounding off' charges on kerosene beyond the price fixed as per the Essential Commodities Act, 1955 and the Kerosene Order, 1993.
  2. 2 Whether such collection is authorized by law or amounts to unauthorized taxation contrary to Article 265 of the Constitution.

Ratio Decidendi

The collection of rounding off charges by the State Government/Collectors for kerosene, in the absence of statutory authority under the Essential Commodities Act, 1955, the Kerosene Order, 1993, or any other law, is unauthorized, amounts to unconstitutional taxation in violation of Article 265 of the Constitution, and is therefore ultra vires and void.

Court Disposition

Appeal allowed; High Court judgment set aside.

Orders

  • Quashing of the scheme for collection of rounding off charges as ultra vires Article 265 of the Constitution, Section 3 of the Essential Commodities Act, 1955, and Para 2(d) of the Kerosene Order, 1993.
  • Accountant General of Madhya Pradesh to carry out audit of the collected fund and report to the Supreme Court; until further orders, the fund stands frozen.