District Magistrate, Haridwar and Another v. Harish Malhotra
Background
A Haridwar cable operator began two private channels carrying local programmes and other video content to subscribers. The District Magistrate demanded Rs. 11,88,500 in additional licence fees by charging for subscribers' television screens under the state's adopted video-exhibition rules. The High Court quashed that part of the demand, and the authorities appealed, relying partly on the operator's earlier payments and undertaking to comply.
Decision Breakdown
The Supreme Court dismissed the authorities' appeal and upheld the rejection of the demand and recovery certificate. The statutory definition concerned paid video exhibitions in public, whereas this operator transmitted programmes to the public through cable subscriptions. That activity therefore did not attract the particular video-exhibition rule used to impose the additional screen fee. An undertaking, consent or earlier payment could not supply the missing statutory authority for the levy.
Lesson Learnt
A licensing authority needs a provision that actually covers the activity and fee being charged. In this case, an operator's earlier cooperation with the authority did not make an otherwise unsupported levy enforceable.