THIRU AROORAN SUGARS LTD Vs. ASSISTANT COMMISSIONER

JUDGEMENT

(1.) The petitioner in W.P. No. 50189 and 50190 of 2006 are common and the petitioner in W.P. No. 50111 of 2006 is one of the appellants before the Tribunal in which a common order came to be passed by the Tribunal dated 9.9.2005 in T.A. Nos. 101 and 102 of 2001, STA Nos. 907 908 of 2001. Therefore, these Writ Petitions are being disposed of by this common order. For the sake of convenience, we refer to the facts relating to the petitioner in W.P. No. 50189 of 2006.

(2.) The Assessment Order pertains to 1993-94. The assessment was completed on 30.10.1995. The assessment was however revised by an order dated 23.4.1999 under Section 16 of the TNGST Act. The petitioners are Sugar Mills. The petitioner in W.P. No. 50189 OF 2006 own lands, from which sugarcane was procured for crushing, apart from purchasing sugarcane from other growers. It is common ground that by virtue of Section 3 of the Essential Commodities Act and pursuant to the Sugar Control Order, 1966 came into being, the Central Government used to fix the price of the sugarcane to be procured apart from additional price fixed by the State Government. Under the Madras Sugar Factories Control Act (in Act 20/1949) and the Madras Sugar Factories Control Rules, 1949, Cess also became payable on entry of sugarcane into the factory. Such cess levied on the Sugar Mills were to be remitted to the Director of Sugars. The question involved herein is as to whether such cess payable under Act 20/1949 would form part of the sugarcane price and thereby would attract payment of Sales Tax under the provisions of the TNGST Act.

(3.) To appreciate the issue involved, it is worthwhile to refer to Section 2(r) and 3(2) of the TNGST Act read along with Part- E of First Schedule as well as Clause 3 and 5A of Sugarcane control Order and Section 10(2) of Act 20/1949 read along with Section 14 of Madras Sugar Factories Control Act 1949. Section 2(r), Section 3(2) and Entry 22 of Part-E of First Schedule read as under: