DIAMOND SUGAR MILLS LIMITED Vs. STATE OF UTTAR PRADESH
LAWS(SC)-1960-12-30
SUPREME COURT OF INDIA (FROM: ALLAHABAD)
Decided on December 13,1960

DIAMOND SUGAR MILLS Appellant
VERSUS
STATE OF UTTAR PRADESH Respondents





Cited Judgements :-

SALAR JUNG SUGAR MILLS LIMITED VS. STATE OF MYSORE [LAWS(SC)-1971-11-23] [REFERRED 1961 3 SCR 242 :]
STATE OF WEST BENGAL VS. KESORAM INDUSTRIES LIMITED [LAWS(SC)-2004-1-84] [REFERRED TO]
JINDAL STAINLESS LTD VS. STATE OF HARYANA [LAWS(SC)-2006-4-102] [REFERRED TO]
ARVIND MILLS LTD VS. STATE OF GUJARAT [LAWS(GJH)-1965-7-2] [REFERRED 38.]
HARYANA SHIP BREAKERS PRIVATE LIMITED VS. UNION OF INDIA [LAWS(GJH)-1995-2-50] [REFERRED TO]
SARIKA VS. STATE OF U P [LAWS(ALL)-2005-2-3] [REFERRED TO]
KOMANDURI SESHAMMA SMT VS. CONTROLLER OF ESTATE DUTY APPELLATE [LAWS(APH)-1971-8-31] [REFERRED TO]
GAYATRI SALT WORKS VS. GOVERNMENT OF ANDHRA PRADESH [LAWS(APH)-1974-12-7] [REFERRED TO]
K VITHAL RAO VS. GOVERNMENT OF ANDHRA PRADESH [LAWS(APH)-1976-4-10] [REFERRED TO]
SURESHCHANDRA SRI GOPAL WHOLESALE SUGAR KHANDASARI MERCHANT and COMMISSION AGENT VS. UNION OF INDIA [LAWS(APH)-1988-9-6] [REFERRED TO]
GOVT OF A P VS. SHARADA TIMBER DEPOT [LAWS(APH)-1996-4-34] [REFERRED TO]
D M THIPPESWAMY VS. STATE OF MYSORE [LAWS(KAR)-1969-10-7] [REFERRED TO]
CHATTOPADHYAY VS. BISESWAR KOER [LAWS(CAL)-1968-6-23] [REFERRED TO]
JOARA SUGAR MILLS PRIVATE VS. STATE OF MADHYA PRADESH [LAWS(MPH)-1963-9-4] [REFERRED TO]
HOTEL BALAJI VS. STATE OF ANDHARA PRADESH [LAWS(SC)-1992-10-49] [CITED]
NEW DELHI MUNICIPAL COUNCIL VS. STATE OF PUNJAB [LAWS(SC)-1996-12-50] [RELIED ON]
RAINBOW CHILDRENS MEDICARE P LTD VS. DEPUTY COMMERCIAL TAX OFFICER VIGILANCE AND ENFORCEMENT [LAWS(APH)-2001-11-91] [REFERRED TO]
NEW MANEK CHOWK SPG AND WVG MILLS COMPANY LIMITED VS. MUNICIPAL CORPORATION OF THE CITY OF AHMEDABADIN ALL THE PETITIONS [LAWS(SC)-1967-2-25] [REFERRED TO]
GANGA SUGAR CORPORATION LTD VS. STATE OF UTTAR PRADESH [LAWS(SC)-1979-9-8] [RELIED ON]
SHETKARI SAHAKARI SAKHAR KARKHANA LIMITED SHETKARI SAHAKARI SAKHAR KARKHANA LIMITED ASHOK SAHAKARI SAKHAR KARKHANA LIMITED VS. COLLECTOR OF SANGLI:COLLECTOR OF SANGLI:COLLECTOR OF AHMEDNAGAR [LAWS(SC)-1979-10-24] [REFERRED TO]
JAORA SUGAR MILLS PRIVATE LIMITED VS. STATE OF MADHYA PRADESH [LAWS(SC)-1965-8-5] [REFERRED TO]
ANDHRA SUGARS LIMITED VS. STATE OF ANDHRA PRADESH [LAWS(SC)-1967-9-33] [CONSIDERED]
P KANNADASAN VS. STATE OF TAMIL NADU [LAWS(SC)-1996-7-116] [REFERRED TO]
BHOPAL SUGAR INDUSTRIES LIMITED VS. STATE OF MADHYA PRADESH [LAWS(SC)-1979-12-26] [FOLLOWED]
STATE OF BIHAR VS. BIHAR CHAMBER OF COMMERCE [LAWS(SC)-1996-2-20] [REFERRED TO]
WELFARE ASSOCIATION ARP MAHARASHTRA VS. RANJIT P GOHIL [LAWS(SC)-2003-2-29] [REFERRED]
A B ABDUL KADIR VS. STATE OF KERALA [LAWS(SC)-1975-11-5] [REFERRED TO]
BOSE ABRAHAM VS. STATE OF KERALA [LAWS(SC)-2001-2-136] [REFERRED]
MAN MOHAN TULI SMT UMA DEVI VS. MUNICIPAL CORPORATION OF DELHI:MUNICIPAL CORPORATION OF DELHI [LAWS(SC)-1981-2-49] [RELIED ON]
STATE OF M P VS. BANARASILAL [LAWS(SC)-1966-9-23] [REFERRED TO]
STATE OF PUNJAB VS. SATYA PAL DANG DR BALDEV PARKASH [LAWS(SC)-1968-7-24] [DISTINGUISHED]
JAGANNATH VS. AUTHORISED OFFICER LAND REFORMS [LAWS(SC)-1971-10-48] [DISTINGUISHED]
JINDAL STAINLESS LTD VS. STATE OF HARYANA [LAWS(SC)-2006-3-82] [REFERRED TO]
BHANUMATI VS. STATE OF UP [LAWS(SC)-2010-5-87] [REFERRED TO]
KRISHI UPAJ VYAVASAI MANDAL VS. STATE OF M P [LAWS(MPH)-1964-4-5] [REFERRED TO]
BHAGABAN ROY VS. FIRST LAND ACQUISITION COLLECTOR [LAWS(CAL)-1980-6-25] [REFERRED TO]
BALKRISHNA DAS VS. PERFECT POTTERY CO LTD [LAWS(MPH)-1984-8-14] [REFERRED TO]
E A THOMMAN VS. REGIONAL TRANSPORT OFFICER ERNAKULAM [LAWS(KER)-1968-3-17] [REFERRED TO]
MAKKU RAWTHERS CHILDREN ASSAN RAVTHER VS. MANAHAPARA CHARAYIL [LAWS(KER)-1971-7-21] [REFERRED TO]
ORISSA CEMENT LTD VS. UNION OF INDIA [LAWS(ORI)-1992-5-1] [REFERRED TO]
ASSOCIATED CEMENT COMPANIES LIMITED VS. STATE OF MADHYA PRADESH [LAWS(MPH)-1995-3-2] [REFERRED TO]
FALMA LABORATORIES PRIVATE LIMITED BANGALORE VS. STATE OF KARNATAKA [LAWS(KAR)-1997-3-34] [REFERRED TO]
ESCORTS MAHLE LTD VS. STATE OF KARNATAKA [LAWS(KAR)-1999-11-25] [REFERRED TO]
OCL INDIA LIMITED VS. STATE OF ORISSA [LAWS(ORI)-2003-2-2] [REFERRED TO]
R GANDHI VS. UNION OF INDIA [LAWS(MAD)-1997-7-73] [REFERRED TO]
JAIKA AUTOMOBILES PVT LTD VS. STATE OF MAHARASHTRA [LAWS(BOM)-1992-8-6] [REFERRED TO]
K B MADHAVAN VS. SUB REGISTRAR [LAWS(KER)-2010-4-3] [REFERRED TO]
SMALL SCALE ENTREPRENEURS ASSOCIATION VS. STATE OF MAHARASHTRA [LAWS(BOM)-2010-7-97] [REFERRED TO]
FOOD CORPORATION OF INDIA VS. STATE OF PUNJAB [LAWS(P&H)-1975-5-5] [REFERRED TO]
ELECTRICAL EXECUTIVE ENGINEER VS. SURENDRA PRASAD PANKAJ [LAWS(PAT)-1965-10-13] [REFERRED TO]
SHANKAR BIRMIWAL VS. UNION OF INDIA [LAWS(RAJ)-1982-1-7] [REFERRED TO]
BIHAR CHAMBER OF COMMERCE VS. STATE [LAWS(PAT)-1995-3-28] [REFERRED TO]
JINDAL STRIPS LTD VS. STATE OF HARYANA [LAWS(P&H)-2001-12-21] [REFERRED]
CHITTOR CEMENT WORKS VS. STATE OF RAJASTHAN [LAWS(RAJ)-2004-9-59] [REFERRED TO]
SANDEEP ALIAS SANDEEP MEHROTRA VS. STATE [LAWS(ALL)-2011-12-181] [REFERRED TO]
INDIAN OLYMPIC ASSOCIATION VS. UNION OF INDIA [LAWS(DLH)-2014-5-318] [REFERRED TO]
RAMESH SONDHI VS. VED PRAKASH [LAWS(HPH)-1997-7-35] [REFERRED TO]
Falma Laboratories Pvt. Ltd., Bangalore VS. State of Karnataka and others [LAWS(KAR)-1997-3-64] [REFERRED TO]
KAILASCHAND KHUSALCHAND BAKLIWAL VS. STATE OF MAHARASHTRA [LAWS(BOM)-1976-4-20] [REFERRED TO]
STATE OF U.P. VS. PAWAN KUMAR DIVEDI [LAWS(SC)-2014-9-8] [REFERRED TO]
HARINAGAR SUGAR MILLS LIMITED VS. STATE OF BIHAR AND ORS. [LAWS(PAT)-1969-9-11] [REFERRED TO]
SREE SHARADA TIMBER DEPOT AND OTHERS VS. GOVERNMENT OF ANDHRA PRADESH AND OTHERS [LAWS(APH)-1994-11-67] [REFERRED TO]
JINDAL STAINLESS LTD.& ANR. VS. STATE OF HARYANA & ORS. [LAWS(SC)-2016-11-11] [REFERRED TO]
D. MAHESH KUMAR VS. STATE OF TELANGANA [LAWS(APH)-2016-11-7] [REFERRED TO]
SMT. SUSHILA SINGHANIA AND ORS. VS. BHARAT HARI SINGHANIA AND ORS. [LAWS(BOM)-2017-3-102] [REFERRED TO]
INDIAN OIL CORPORATION LTD VS. STATE OF U P AND ANOTHER [LAWS(ALL)-2018-5-27] [REFERRED TO]
INTERNATIONAL SPIRITS AND WINES ASSOCIATION OF INDIA VS. STATE OF HARYANA AND OTHERS [LAWS(P&H)-2017-5-283] [REFERRED TO]
HINDUSTHAN NATIONAL GLASS & INDUSTRIES LIMITED, MAHARASHTRA VS. STATE OF MAHARASHTRA [LAWS(BOM)-2019-3-78] [REFERRED TO]
COMMISSIONER CENTRAL EXCISE & CUSTOMS VS. DUJODWALA RESINS & TERPENES LTD & ANOTHER [LAWS(UTN)-2019-7-20] [REFERRED TO]
PANDURANG GANPATI CHAUGULE VS. VISHWASRAO PATIL MURGUD SAHAKARI BANK LIMITED [LAWS(SC)-2020-5-2] [REFERRED TO]
VINODCHANDRA SAKARLAL KAPADIA VS. STATE OF GUJARAT [LAWS(SC)-2020-6-15] [REFERRED TO]


JUDGEMENT

- (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."

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