(1.)X X X X
"In exercise of the powers conferred by sub-section (1) of S. 20 of Uttar Pradesh Sugarcane (Regulation of Supply and Purchase) Act, 1953 (U. P. Act No. XXIV of 1953) the Governor is pleased to declare that during the 1954-55 crushing season, a cess at the rate of three annas per maund shall be levied on the entry of all sugarcane into the local areas comprised in the factories mentioned in the Schedule, for the consumption, use or sale therein."
Similar notifications were also issued on October 23, 1954, for the crushing season 1954-55 and on November 9, 1955, for the crushing season 1955-56. The appellants' factory was one of the factories mentioned in the schedule of all these notifications. On the date of the application, i. e., February 24, 1956, a sum of Rs. 2,59,644/9/- was due from the first appellant and a further sum of Rs. 2,41,416/3/- as liability on account of cess up to the end of January, 1956, also remained unpaid.
(2.)The appellant contended on various grounds that S. 20 of Act XXIV of 1953 was unconstitutional and invalid and prayed for the issue of appropriate writs directing for respondents the State of U. P. and the Collector of Gorakhpur not to levy and collect cess on account of the arrears of cess for the crushing season 1954-55 and in respect of the crushing season 1955-56 and successive crusing season and to withdraw the notifications dated October 23, 1954, and November 9, 1955, which have been mentioned above.
(3.)During the pendency of this application under Art. 226 before the Allahabad High Court the U. P. Legislature enacted the U. P. Sugarcane Cess Act, 1956 (U. P. Act No. XXII of 1956), repealing the 1953 Act. Section 3 of this Act as originally enacted was in these words :-
"The State Government may by notification in the official gazette impose a cess not exceeding four annas per maund on the entry of the cane into the premises of a factory for use, consumption or sale therein :
Provided that the State Government may likewise remit in whole or in part such cess in respect of cane used or to be used in factory for any limited purpose specified in the notification.
Explanation : - If the State Government, in the case of any factory situate outside Uttar Pradesh, so declare, any place in Uttar Pradesh set apart for the purchase of cane intended or required for use, consumption or sale in such factory shall be deemed to be the premises of the factory.
2. The cess imposed under sub-sec. (1) shall be payable by the owner of the factory and shall be paid on such date and at such place as may be prescribed.
3. Any arrears of cess not paid on the date prescribed under sub-sec. (2) shall carry interest at 6 per cent, per annum from such date to date of payment."