Judgment

A. D. KOSHAL, J.:- By this judgment we shall dispose of five civil appeals in each one of which the appellant who is a registered co-operative society, challenges a judgment of the High Court of Bombay dismissing its petition for the issuance of an appropriate writ striking down the levy and demand of the cess imposed on it under the Bombay Sugarcane Cess Act, 1948 (hereinafter referred to as the Bombay Act) supplemented by the Sugarcane Cess (Validation) Act, 1961 (for short, the Central Act).

2. The following table indicates the name of the appellant and the amount of cess impugned in each of the appeals as also other relevant particulars:

No. of appeal Name of appellant Amount of Cess Period to which the amount relates Date of the order of assessment Authority passing the Order

(Rs.)

Civil Appeal No. 39 of 1969. The Shetkari Sahakari Sakhar Karkhana Ltd., Sangli. 3,70,072.50 1-7-1959 to 30-6-1960 21-12-1960 Sugarcane Cess Officer, Sangli.

Civil Appeal No. 40 of 1969 -do- 8,01,131.24 1-7-1960 to 30-6-1961 24-5-1966 -do-

Civil Appeal No. 2470 of 1968. -do- 3,24,610.35 1-7-1961 to 31-12-1961 24-5-1966 -do-

Civil Appeal No. 1925 of 1972. Ashok Sahakari Sakhar Karkhana Ltd., Ashok Nagar. 3,73,640.56 1-7-1961 to 31-12-1961 12-4-1962 Sugarcane Cess Officer. Ahmednagar.

Civil Appeal No. 1926 of 1972. Girna Sahakari Sakhar Karkhana Ltd., Dabhadi. (i) 5,77,329.65 1-7-1960 to 30-6-1961 18-7-1962 Sugarcane Cess Officer, Nasik.

(ii) 1,91,409.53 1-7-1961 to 31-12-1961 18-7-1962 -do-

3. It may be of advantage of reproduce here the relevant provisions of the Bombay act. Clauses (1), (2), (3) and (4) of Section 2 thereof reads thus:

"2. In this Act, unless there is anything repugnant in the subject or context,-

(1) factory means any premises including the precincts thereof, wherein twenty or more workers are working or were working on any day of the preceding twelve months and in any part of which any manufacturing process connected with the production of sugar by means of vacuum pans is being carried on, or is ordinarily carried on, with the aid of power;

(2) local area means any area comprised in such factories as may be specified in the notification under Section 3;

(3) notified factory means a factory specified in the notification under Section 3;

(4) occupier means the person who has ultimate control over the affairs of a notified factory; Provided that where the affairs of such factory are entrusted to a managing agent, such agent shall be deemed to be the occupier;"

Section 3 empowers the State Government to specify, by notification in the official gazette, any factory the area comprised in which shall be a local area for the purposes of the Act. Section 4 minus the proviso states:

"4. A cess at such rate not exceeding ten rupees per ton as may be specified by the State Government in a notification in the Official Gazette shall be levied on the entry of sugarcane into a local area for consumption or use therein."

Section 5 provides for licences to be taken out by consumers or users of sugarcane in notified factories while Section 6 lays down that every occupier shall furnish to the prescribed authority before the seventh day of each month a return in the prescribed form stating the total quantity in tons of sugarcane which entered the local area comprised in his factory for consumption of or use therein during the preceding months. Sections 7 and 8 provide for the assessment, recovery and collection of the sugarcane cess. The rest of the Act consists of miscellaneous provisions which need not be referred to here.

4. Now we may detail the circumstance in which the Central Act was made part of the statute book. In 1956 the U. P. legislature passed the U. P. Sugarcane Cess Act (hereinafter referred to as the U. P. Act) the provisions of which were similar to that of the Bombay Act. Section 3 of the U. P. Act authorised the State Government to impose, by notification in the official gazette, a cess not exceeding four annas per maund on the