Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | 1958 Madhya Pradesh Sugarcane (Re-Rulation of Supply and Purchase) Act |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | Sugarcane Cess (validation) Act, 1961 (38 of 1961) Madhya Pradesh Sugar Cane (regulation of Supply & Purchase) Rules, 1959 (0 of 1959) Madhya Pradesh Sugar Cane (regulation of Supply & Purchase) Act, 1958 (1 of 1959) |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Madhya Pradesh Sugarcane (Regulation of Supply and Purchase) Act, 1958, s. 23 and s. 23(1), constitutionality, "an area", whether synonymous to "local area" in Entry 52, List II of the Seventh Schedule, Constitution of lndia - s. 23(2) and Rule 60, M.P.S. (Regulation of Supply and Purchase) Rules, 1959, whether require formal assessment order prior to collection of cess.Sugarcane cess (Validation) Act, 1961, Constitutionality, whether purports to Validate Invalid State Statutes.The appellant company cultivates sugarcane and manufactures sugar in its factory, by crushing the sugar cultivated by it and purchased from other cultivators. The State Government enacted the M.P. Sugarcane (R.S.P.) Act, 1958 which came into force on July 1, 1959. The State Government issued a notification under s. 23 of the Act imposing a cess of 12 paise per maund on the entry of sugarcane during a crushing season in the area comprised within "such of the factories in which the total quantity of cane entering for consumption, use or sale to the factory during such season exceeded 10 lakh maunds." The High Court, on a writ application by the appellants, declared the notification illegal as the imposition of the levy was with reference to particular premises. The Parliament thereupon enacted the Sugarcane Cess (Validation) Act, 1961. Section 3 of the Validation Act was taken to validate the imposition and collection of the cess under the State Act. In April, 1964, the appellant received an intimation from the Additional Collector stating that a sum of Rs. 5,49.262.92 was due from it as cess for the period 1959-60 to December 25, 1961, and asking for a bank guarantee for payment of the balance. The appellant replied that the amount of cess worked out only to Rs. 5,44.835.69 and the Collector had not assessed the cess in accordance with the rules. Its objection was ignored and a demand notice was served on it under s. 146 of the M.P. Land Revenue Code, 1959, for Rs. 5,49,262.92. The appellant filed a writ petition challenging the constitutionality of the Validation Act under which the Collector had demanded the cess. The High Court upheld the imposition of cess but reduced it to Rs. 5,44,835.69.It was contended that s. 23 of the State Act was not ultra vires the Constitution, as the expression "an area" in s. 23(1) means "a local area" within the meaning of Entry 52 of List II, 7th Schedule of the Constitution, and the Parliament could not, therefore, enact an Act validating a valid Act. It was further contended that when a law provides for the assessment of a cess or tax, it is required to be done by a specific order to that effect, but it was not made in this case. |
Judge | Hon'ble Mr. Justice P.N. Shinghal |
Neutral Citation | 1978 INSC 251 |
Petitioner | Bhopal Sugar Industries Ltd. |
Respondent | State Of Madhya Pradesh & Ors. |
SCR | [1979] 2 S.C.R. 605 |
Judgement Date | 1978-12-05 |
Case Number | 1293 |
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