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Supreme Court of India 2024-07-15 allowed

STATE OF PUNJAB & ORS vs M/S PUNJAB SPINTEX LTD. …

Bench: 2 — Vikram Nath, Prashant Kumar Mishra

In Brief

Punjab Spintex Ltd., a spinning unit, sought exemption from both Market fee and Rural Development fee under the 2003 Punjab Industrial Policy. The State opposed, arguing these are distinct fees under separate statutes with different purposes. The High Court dismissed the petition without adjudicating on merits. The Supreme Court held that Market fees (levied under the 1961 Act) and Rural Development fees (under the 1987 Act) are separate levies with different objects. The 2003 Policy grants exemption only from Market fees, not Rural Development fees. Absent express language in the policy, exemption from one fee cannot be presumed to extend to the other. Appeals allowed, High Court orders set aside.

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