GOGRAS INDIAN FEEDS Vs. STATE OF U.P

JUDGEMENT

(1.) Heard learned counsel for the petitioner and Sri H.P. Srivastava, learned Additional Chief Standing Counsel. The petitioner is manufacturing cattle feed from molasses, which is raw material being purchased from different sugar mills. The State of U.P. enacted the U.P. Sheera Niyantran Adhiniyam, 1964 (hereinafter referred to as "the Act"). Sub-section (4) of section 7A of the Act provides that the occupier of a sugar factory shall be liable to pay to the State Government in the manner prescribed, administrative charges at such rate, not exceeding five rupees per quintal as the State Government from time to time notify, on the molasses sold or supplied by him. We have been informed that rate of Rs. 5 has been enhanced to Rs. 11 per quintal.

(2.) The petitioner's counsel further alleges that the U.P. Sheera Niyantran Adhiniyam, 1964 is the special Act and the same has been enacted for control of storage, gradation and price of molasses produced by sugar factories in the State of U.P. and the regulation of supply and distribution thereof. Sub-section (5) of section 7A of the Act provides that occupier shall be entitled to receive from the person to whom the molasses is sold or supplied an amount equivalent to the amount of such administrative charges, in addition to the price of molasses.

(3.) The petitioner's counsel further alleges that the State Government is already charging taxes from the petitioner under the U.P. Sheera Niyantran Adhiniyam, 1964, which is the special enactment for molasses only and as such, under the U.P. Trade Tax Act or VAT Act, no tax should be realised inasmuch as, it amounts to double tax under two different enactments.