SRI SRINIVASA RAW & BOILED RICE MILL vs GOVT. OF A.P. — C.A. No. 5147/1999

Case Summary: Vijayalashmi Rice Mill v. Commercial Tax Officers, Palakol Case Details: Civil Appeal Nos. 5120-5132 of 1999 | Supreme Court | Judgment: 07/08/2006 Decision: The Supreme Court upheld the constitutional validity of the Andhra Pradesh Rural Development Act, 1996, dismissing appeals by rice mill operators challenging a 5% cess on purchase of goods. The Court held that the cess constitutes a fee (not a tax) under Entry 66 of the Seventh Schedule, as it funds rural development services including road construction, storage facilities, and public distribution systems. The Court emphasized that modern fee jurisprudence no longer requires direct individual benefit—only a "broad correlation" between total fees collected and total services rendered is necessary. This case analysis is maintained by casestatus.in based on publicly available court records.