R P JAIN Vs. STATE OF BIHAR

JUDGEMENT

(1.) This application is directed against the order dated 30 October, 1975, passed by the Chief Judicial Magistrate, Siwan, in case No. C II. 149 of 1975, taking cognizance of offence Under Section 52 of the Bihar Sugarcane (Regulation of Supply and Purchase) Ordinance, 1975, for contravention of Section 49(7) of the said Ordinance. Section 52 of the Ordinance is the penal section for contravening or attempting to contravene or abetting the contravention of any of the provisions of the Ordinance or the Rules thereof or of any order made or direction given thereunder or the terms and conditions of any license. In the instant case, the contravention alleged is of Sub-section (7) of Section 49 of the said Ordinance, namely, of removing sugar from the factory without clearing the tax imposed Under Sub-section (1) of Section 49.

(2.) The relevant facts leading to the application are as under. The petitioners are occupiers of factory being Director and General Manager of S. K. G. Sugar Ltd. Co., Siwan, a company registered under Indian Companies Act, with head office at Palna. The company is a sugar factory situated at Siwan in the district of Siwan and is engaged in production of sugar. For the purpose of regulating the production, supply and distribution of sugarcane intended for use in sugar factories and Khandsari sugar manufacturing units and taxation of sugarcane and matters incidental thereto, the Governor of Bihar has been promulgating Ordinance known as the Bihar Sugarcane (Regulation of Supply and Purchase) Ordinance since the year 1968. In terms of Section 49(1)(a) of the Ordinance the State Government have been empowered to impose by notification in the official gazette tax on the purchase of sugarcane. Such tax is to be paid by the of cupier of the factory to the Collector of the District concerned in such manner as may be prescribed. In terms of Sub-section (3) of Section 49 of the Ordinance, the arrears of tax are recoverable as public demand or as an arear of land revenue. The expression ''occupier of a factory" has been defined in Section 2(1) of the Ordinance as meaning a person carrying on business of manufacturing sugar by vacuumpan process in a factory and having the ultimate control over the affairs of the factory. The tax is payable in respect of each crushing season which means according to Section 2(1) of the Ordinance, the year commencing on the first day of July in any year and ending on the 30th June in the year next following. Under Sub-section (7) of Section 49 until the tax imposed under Sub-section (1) of the said section is paid and certificate of payment is obtained from the Cane Officer concerned, the occupier of any factory or any persons acting on his behalf or any other person shall not remove sugar from the factory. If any person contravenes the mandate laid under Sub-section (7) of Section 49, he exposes himself to punishment Under Section 52 of the Ordinance. These are the relevant provisions of the Ordinance concerning the case. It may, however, be stated that the contravention complained of against the petitioner refers to the crushing season 1974-75. In the proposal sent by the Cane Officer, Siwan for sanctioning prosecution against the S. K. G. Sugar Ltd. Co. Under Section 52, a copy of winch proposal has been attached to the petition marked as annexure '1', the persons accused, besides the two petitioners, are Sri L. L. Choudhary, Works Manager, Shri Shakti Singh, Cane Superintendent. According to the Cane Commissionar, a quantity of 11528 quintals of sugar was despatched by the factory up to the month of August, 1975, and 1st September, 1975. On despatches of sugar, the cane cess payable works out to Rs. 1,40,064.30 which has not been paid before the despatch of the sugar.

(3.) Sanction to prosecute the persons complained against, which as stated earlier included besides the petitioners two other persons, having been accorded by the Cane Commissioner, the Cane Officer submitted a prosecution report before the Chief Judicial Magistrate, Siwan against the said accused persons on the 30th of October, 1975 On the same date cognizance of offence Under Section 52 of the Bihar Sugarcane (Regulation of Supply and Purchase) Ordinance, 1975 was taken for contravention of the provisions of Section 49(7) of the said ordinance. The accused persons were summoned in regard to that Ordinance.