- (1.) This is a sequel to the judgment of this court in Synthetics and Chemicals Ltd. v. State of U. P. At SCR p. 682 it was observed: "On an analysis of the aforesaid decisions and practice, we are clearly of the opinion that in respect of industrial alcohol the States are not authorised to impose the impost they have purported to do. In that view of the matter, the contentions of the petitioners must succeed and such impositions and imposts must go as being invalid in law so far as industrial alcohol is concerned. . "on this view it was further declared : "We must, however, observe that these imposts and levies have been imposed by virtue of the decision of this court in Synthetics and Chemicals Ltd. case The States as well as the petitioners and manufacturers have adjusted their rights and their position on that basis except in the case of State of Tamil Nadu. In that view of the matter, it would be necessary to state that these provisions are declared to be illegal prospectively. In other words, the respondent States are restrained from enforcing the said levy any further but the respondents will not be liable for any refund and the tax already collected and paid will not be refunded. We prospectively declare these imposts to be illegal and invalid, but do not affect any realisations already made. "
(2.) Therefore, what Mr Anil B. Divan, learned Senior Counsel, contends is the order made by a bench of three Judges of this court in Writ Petition Nos. 7452 of 1981 and 3571 of 1982, Sachid Hussain v. State of U. P. must apply. According to him, the appellants would not be entitled to refund but at the same time they cannot be subject to liability at present.
(3.) In opposition to this, it is submitted that because of the stay granted by this court, the State could not effect recovery. No doubt, on and from 25/10/1989 the appellants may not be liable; but in view of the prospectiveoverruling in Synthetics and Chemicals the levy prior to that period is not, in any manner, affected. As a matter of fact, this court in several cases has permitted the levy of vend fee prior to 25/10/1989.;