INDIA GLYCOLS LIMITED Vs. STATE OF UTTARAKHAND

JUDGEMENT

(1.) THE petitioner, before this Court, is a Company which is engaged, inter alia, in the manufacture of chemicals. One of the essential raw materials or ingredients for manufacture of these chemicals is "Molasses", which is a by product in the manufacture of "sugar", by Sugar Industries. The petitioner is, presently, challenging the order dated 20th June, 2013 (Annexure No. 2 to the writ petition), by which the Additional Secretary to the Government of Uttarakhand has passed an order, declaring State's policy, regarding distribution of "Molasses" such as what percentage has to go for the manufacturing of country made liquor, what percentage has to go to industrial and chemical units and the remaining for free sale, for different years 2012 -13, 2013 -14, 2014 -15 and 2015 -16. Apart from this, they have imposed a charge on the "Molasses" in the form of "Administrative Charge" @ 11.00 per quintal on import of Molasses from other States," 15.00 per quintal on such Molasses which is imported from other countries. There is also a charge of 20.00 per quintal on the export of "Molasses" outside the State and 15.00 per quintal on the sale of "Molasses" reserved for country made liquor, Molasses based chemical and industrial units and Rs. 20.00 per quintal administrative charge on the free sale of "Molasses".

(2.) THE petitioner has challenged the said order on various grounds. Initially, the learned counsel for the petitioner, has argued that the only "Statute" under which State Government can levy charge is known as "U.P. Sheera Niyantran Adhiniyam, 1964 (from herein after referred to as the "1964 Act"). Under the provisions of Section 86/88 of the U.P. Reorganization Act, 2000, said Act is applicable in the State of Uttarakhand. The relevant provisions for our purpose will be Section 7 -A and Section 8 which reads as under: -

(3.) FURTHER under Section 4 of the 1964 Act, the State Government appoints a Controller of Molasses. Section 4 of 1964 Act reads as under: -