Levy, may include both the process of taxation as well as the determination of the amount of tax or duty, S.K. Pattanaik v. State of Orissa, (2000) 1 SCC 413.
The term 'levy' is wider in its import than term 'assessment'. It may include both 'imposition' as well as 'assessment' Imposition is generally used for levy of a duty or tax by legislative provisions indicating the subject-matter of levy and rate of levy. Levy of duty does not mean actual collection, Collector of Central Excise, Chandigarh v. Smith Kline Beecham Consumer Health Care Ltd., AIR 2003 SC 829. [see Central Excise Act, 1944 (1 of 1944)]
[fr. levo, Lat.], the act of raising money or men.
Assessment and collection of income tax The expression 'levy, assessment and collection of income-tax' in section 13(1) of the Finance Act, 1950, was wide enough to comprehend re-assessment proceedings under section 34 of the Income Tax Act, 1922, Income Tax Officer v. K.N. Guruswamy, AIR 1958 SC 808: (1959) SCR 785.
Levy under section 14(e) of Finance Act, 1950, is fee and not tax, Southern Pharmaceuticals and Chemicals v. State of Kerala, AIR 1981 SC 1863: (1981) 4 SCC 391
The word 'levy' has also been understood in a broad sense in various cases to include not only the imposition of the charge but also the whole process up to raising of the demand. The Constitution guarantees that only the levy should be lawful but also collection of tax must also be done with the authority of law, Mafatlal Industries Ltd. v. Union of India, (1997) 5 SCC 536 (653).
The term 'levy' is wider in its import than the term 'assessment'. It may include both 'imposition' as well as 'assessment', C.C.E. v. Smithklive Beecham Consumer Health Care Ltd., AIR 2003 SC 829 (832): (2003) 2 SCC 169.
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