2013 (8) TMI 1133 - HC - Indian Laws

Summary

Issues involved: Interpretation of U.P. Sheera Niyantran Adhiniyam, 1964 and the imposition of administrative charges on molasses under Section 7-A.

The judgment addresses the petitioner's contention regarding the imposition of administrative charges under the U.P. Sheera Niyantran Adhiniyam, 1964, specifically focusing on the rate increase from Rs. 5 to Rs. 11 per quintal. The petitioner argues against double taxation under different enactments, citing the U.P. Trade Tax Act and VAT Act. The Court refers to a previous case where trade tax on molasses was deemed unlawful, leading to a refund order. The Court directs the State not to collect trade tax on molasses purchases and orders a refund for taxes collected post the specified date. The judgment is pending appeal in the Supreme Court, with an interim stay on refunds and provision for interest if the assessee succeeds. The Court upholds the previous Division Bench judgment and interim Supreme Court order, subject to the final outcome of the pending appeal. The respondents are barred from collecting tax on molasses during the appeal, with a requirement to maintain records for potential future tax liability if the appeal is unsuccessful.