NEW SWADESHI DISTILLERY (PROPRIETOR OUDH SUGAR MILLS LIMITED), AT AND P.O. NARKATIAGANJ, P.S. SHIKARPUR, DIST Vs. THE STATE OF BIHAR THROUGH THE CHIEF SECRETARY, GOVT. OF BIHAR, PATNA AND OTHERS (IN ALL)

JUDGEMENT

(1.) These seven writ petitions have been treated as analogous matters and heard together because they raise common issues by challenging the vires of Bihar Molasses (Control) (Amendment and Validation) Act, 1999 (Hereinafter referred to as the Validating Act) published in the official gazette on 10.01.2000. Petitioners have also sought for quashing of various demand notices issued pursuant to the aforesaid Validating Act by which they have been directed to pay administrative charges for the molasses consumed by them in their captive distilleries (in case of those petitioners who have sugar mills along with captive distilleries) or for the molasses lifted by them from various sugar mills during the period 1995-2000. In some of the writ petitions interlocutory applications have been filed for refund of administrative charges already paid pursuant to the Validating Act.

(2.) The issues falling for determination in these cases are mainly issues of law. The relevant facts lie within a narrow compass and are not in dispute. For the sake of convenience the facts and documents shall be referred from the records of CWJC No. 3829 of 2000. Only in case of necessity facts from other records may be referred to with due reference to the specific case. In general, it is evident that petitioners are distilleries holding relevant licenses under Bihar Excise Act and are engaged in the manufacture of spirit and Indian Made Foreign Liquor from molasses and other bases. Some of the petitioners also have their own sugar mills wherein they produce molasses which they consume in their captive distilleries. The dispute relates to levy of administrative charges under the provisions of Bihar Molasses Control Act, 1947 (hereinafter referred to as the 'Act').

(3.) The object of the aforesaid Act is to provide for control of distribution, supply, storage and price of molasses produced in the State of Bihar. The occupiers of the factory and the stockists engaged in production and storage respectively of molasses are required to submit returns as per provisions of Sec. 3 of the Act. Sec. 4 of the Act requires permission of the controller for moving molasses produced in a sugar factory. Sec. 5 also imposes restraint on the supply of molasses in absence of permission of the controller. Sec. 8 contains power for price fixation of molasses to be sold by the factory or stockist. Sec. 8A of the Act empowers the State Government to levy administrative charge at rates notified by the State Govt. This charge is to meet the cost of establishment for supervision and control over release of molasses and is to be recovered from the purchaser.