GOBIND SUGAR MILLS LIMITED Vs. STATE OF BIHAR

JUDGEMENT

(1.) These appeals by special leave are against the judgment and order dated 4-7-1996 passed by the High Court of Judicature at Patna in C.W.J.C. No. 8754/93 and other connected matters. The appellants in these appeals are engaged, inter alia, in the business of manufacturing sugar and for its production they use sugarcane as the basic raw-material. The State of Bihar, according to the appellants, is levying and collecting purchase tax on the sugarcane purchased by them both under the provisions of the Bihar Finance Act, 1981 (for short 'the Finance Act') as well as the Bihar Sugarcane (Regulation of Supply and Purchase) Act, 1981 (for short 'the Sugarcane Act'). Thus, subjecting the same purchase of sugarcane to tax twice under two different Acts. The appellants contend that the State Legislature having once provided for the levy of purchase tax under the Sugarcane Act, cannot impose the same levy under the Finance Act.

(2.) This challenge of theirs having failed before the High Court, the appellants are now before us in these appeals.

(3.) On behalf of the appellants, Mr. Shanti Bhushan, learned Senior Counsel, contended that the Sugarcane Act being a special enactment for levying purchase tax exclusively on sugarcane while providing also for regulation of production, supply and distribution of sugarcane, it would become a special enactment and would override the provisions of the Finance Act, with reference to levy of purchase tax on sugarcane. He contended that the Finance Act is a general Act which provides for collection of commercial taxes on sale and purchase of goods. Hence, on a harmonious construction of the two enactments, it should be held that the State of Bihar could only levy purchase tax on the purchase of sugarcane under the Sugarcane Act.