Is The Difference Between Tax And Fees Obliterated?

The question regarding the meaning and scope of terms Tax and Fees is one of the earliest interpretational issues taken up by the Hon'ble Supreme Court of India, yet the test to differentiate between said terms remains unsettled. The Courts in the past seven decades have acknowledged the existence of constitutional difference between Tax and Fees and have laid down several tests to determine whether a particular levy is a Tax or a Fees.

However, recent judicial trends suggests that the difference between Tax and Fees has been obliterated. Such observations by the Courts will have a far-reaching consequence and impact. This article analyzes the difference between Tax and Fees and how the Courts in recent time are diverting from the earlier decisions highlighting the difference between Tax and Fees.