STATE OF UTTAR PRADESH Vs. SYNTHETICS AND CHEMICALS LIMITED

JUDGEMENT

(1.) Leave granted.

(2.) This appeal is brought by the State of Uttar Pradesh against the judgment of the Allahabad High court in Civil Miscellaneous Writ Petition No. 361 of 1976. The High court, allowing the writ petition, declared the Uttar Pradesh Sales of Motor Spirit, Diesel Oil and Alcohol Taxation (Amendment) Act, 1976 (U. P. Act 8 of 1976 to be null and void insofar as it purported to levy purchase tax on industrial alcohol. By this Act, Ss. (1 of S. 3 of the United Provinces Sales of Motor Spirit, Diesel Oil and Alcohol Taxation Act, 1939 was amended, so as to substitute the following sub-section:

(3.) The State contended before the High court that the aforesaid decision of this court did not deal with any levy of tax falling under Entry 54 of List II. The power of the State to levy taxes on the sale or purchase of goods was not the subject of consideration in that decision. What was considered was the power of the State to collect vend fee or transport fee or the like by recourse to Entry 8 or 51 of List II with reference to the production, manufacture, possession, transport, purchase and sale of industrial alcohol during the operation of the IDR Act and the rules made thereunder.