Vam Organic Chemicals Limited & ... vs The State Of Uttar Pradesh & Others on 21 January, 1997
In Vam Organic Chemicals Ltd. & Anr. v. State of
U.P. & Ors. (1997 (2) SCC 715), this Court held that there
is a distinction between a fee charged for licence, that is
regulatory fees and fees for services rendered as
compensatory fees. In the case of regulatory fees, the
Court held that like the licence fees, existence of quid pro
quo is not necessary although the fee imposed must not be,
in the circumstances of the case, excessive, keeping in view
the quantum and nature of the work involved in the required
supervision.