RAY - (1.) THESE appeals are by certificate against the judgment and order dated 16/04/1968 of the High Court of Mysore dismissing the applications of the appellants under Article 226 of the Constitution for writs, orders and directions prohibiting the respondent-State of Mysore and the Commissioner for Commercial Taxes at Bangalore from levying or taking proceedings to levy any purchase tax on purchase of sugarcane from the grower or from collecting or taking any proceedings for recovery of any such tax with or without penalty from the appellants. The appellants also asked for orders, writs and directions for refund of several sums of money collected as and for purchase tax.
(2.) THE appellants are the India Sugars and Refineries Ltd. and the Salar Jung Sugar Mills Ltd. THE India Sugars and Refineries Ltd. is situated at Hospet in Bellary District in Mysore and the Salar Jung Sugar Mills Ltd. is situated at Munirabad in Raichur District in Mysore. The appellant, the Indian Sugars and Refineries Ltd. in four applications now Civil Appeals No. 2015, 2016, 2017 and 2014 of 1968 impeached the demand and collection made against the appellant for large sums of money as and for purchase tax and penalty on the purchase of sugarcane from the growers for the period 1/04/1962 to 30/06/1967 and further asked for refund of large sum of money collected as purchase tax. The appellant Salar Jung Sugar Mills Ltd. in four applications now Civil Appeals No. 2003, 2004, 2005 and 2002 of 1968 asked for similar orders and directions in respect of the period 1/07/1963 to 30/06/1967.
(3.) IN the fifties practically all the States in which sugarcane was grown for the purpose of manufacturing sugar used to levy cess on sugarcane brought into the premises of sugar factories. This Court in Diamond Sugar Mills v. State of U. P. (1961) 3 SCR 242 = ( AIR 1961 SC 652) held that Section 3 of the U. P. Sugarcane Cess Act, 1956 which empowered the Governor of the State to impose cess on entry of sugarcane into the premises of a factory did not fall within Entry 52 of List II and as there was no entry in the State List or in the Concurrent List in which the said Act could fall, it was beyond the legislative competence of the State Legislature. The decision of this Court was given on 13/12/1960. The Sugarcane Cess (Validation) Act, 1961 was passed by Parliament validating the imposition of collection of cess on sugarcane under several State enactment's before the commencement of the Validation Act of 1961. The Mysore State Legislature imposed tax on purchase of sugarcane into force on 1/10/1961, by Mysore Act No. 11 of 1961 which cane purchased by sugar factories. Sugarcane was included at Serial No. 11-A in the Third Schedule to the Mysore Sales Tax Act, 1957 The relevant provision in the Mysore Act is as follows:- JUDGEMENT_23_1_1972Html1.htm ;