- (1.) The question for decision is: Whether for the purchase of sugarcane from the canegrowers, a purchaser is liable to pay purchase tax under the State Sales Tax Act on the amount paid by the purchaser to the canegrower over and above the price fixed under clauses 3 and 5-A of the Sugarcane (Control) Order, 1966
(2.) Clause 3 of the Control Order issued under the Essential Commodities Act, 1955 empowers the central government to fix the minimum price for sugarcane for each season and different prices are permitted to be fixed for different areas or different quantities or varieties of sugarcane. Since 1/10/1974 pursuant to the acceptance of Bhargava Commission Report, the central government introduced clause 5-A in the Sugarcane (Control) Order, 1966, the material part of which is as under: "5-A.additional price for sugarcane purchased on or after 1/10/19744.- (1 Where a producer of sugar or his agent purchases sugarcane from a sugarcane grower during each sugar year, he shall, in addition to the minimum sugarcane price fixed under clause 3 pay to the sugarcane grower 754 an additional price, if found due in accordance with the provisions of the Second Schedule annexed to this Order. (2 The central government or the State government, as the case may be, may authorise any person or authority, as it thinks fit, for the purpose of determining the additional price payable by a producer of sugar under sub- clause (1 and the person or authority, as the case may be, who determines the additional price, shall intimate the same in writing to the producer of sugar and sugarcane grower connected with the supply of sugarcane to such producer of sugar. * *''* In Tamil Nadu, the State government duly exercised its power by appointing the Director of Sugar and Cane Commissioner, who, 'by order dated 2/7/1983 determined the "additional cane price" under clause 5-A at Rs. 28.15 per MT for the respondent i. e. Thiru Arroran Sugars Ltd. , making the final statutory cane price as per the Control Order at Rs. 179.55 per MT, the "minimum cane price" fixed by the central government being Rs. 151.40 per MT. There is no dispute that this additional price fixed under clause 5-A attracts purchase tax which has already been paid. However, the dispute is with regard to the claim of the State government for payment of purchase tax on the excess amount paid by the purchaser in addition to the aggregate of the minimum cane price fixed under clause 3 and the additional cane price fixed under clause 5-A by the central government.
(3.) The occasion for payment by the purchaser of the amount in excess of the aggregate of the minimum cane price and the additional cane price so fixed, arises on account of an order of the State government dated 15/11/1980 purporting to fix a higher revised minimum cane price and directing the sugar factories in Tamil Nadu to pay that price to the canegrowers. Pursuant to the direction, each sugar factory was directed to make that payment and in compliance thereof this sugar factory paid the excess amount as an 'advance' described as under: ".. Being advance payment towards cane supply during 1980-81 season, against probable additional cane price under Section 5-A of the Sugarcane (Control) Order, 1966. ";