9911796707
TMI Blog1999 (8) TMI 761X X X X Extracts X X X X X X X X Extracts X X X X ..... c raw material. The State of Bihar, according to the appellants, is levying and collecting purchase tax on the sugarcane purchased by them both under the provisions of the Bihar Finance Act, 1981 (for short "the Finance Act") as well as the Bihar Sugarcane (Regulation of Supply and Purchase) Act, 1981 (for short "the Sugarcane Act"). Thus, subjecting the same purchase of sugarcane to tax twice under two different Acts. The appellants contend that the State Legislature, having once provided for the levy of purchase tax under the Sugarcane Act, cannot impose the same levy under the Finance Act. 2.. This challenge of theirs having failed before the High Court, the appellants are now before us in these appeals. 3.. On behalf of the appellants, Mr. Shanti Bhushan, learned Senior Counsel, contended that the Sugarcane Act being a special enactment for levying purchase tax exclusively on sugarcane while providing also for regulation of production, supply and distribution of sugarcane, it would become a special enactment and would override the provisions of the Finance Act, with reference to levy of purchase tax on sugarcane. He contended that the Finance Act is a general Act which provi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of goods wherever applicable. Sections 4 to 6 of the said Act which empower the levy of various types of commercial taxes read thus: "4. Levy of purchase tax.-Subject to the provisions of sections 5, 6 and 7 of this part, every dealer liable to pay tax under section 3, who purchases goods in circumstances in which no sales tax is payable or has been paid on the sale price of such goods and either consumes such goods in the manufacture of other goods for sale or otherwise disposes of such goods in any manner other than by way of sale in the State or sale in the course of inter-State trade or commerce, shall be liable to pay tax on the purchase price of such goods at the same rate at which it would have been leviable on the sale price of such goods under section 12. 5.. Surcharge.-(1) Every dealer whose gross turnover during a year exceeds rupees five lakhs shall, in addition to the tax payable by him under this Part also pay a surcharge at such rate not exceeding ten percentum of the total amount of the tax payable by him, as may be fixed by the State Government by a notification published in the official Gazette: Provided that the aggregate of the tax and surcharge payable under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e under section 3 or section 4 equals the maximum amount of tax permissible under section 15 of the Act, no additional tax shall be payable under this section; (ii) where the additional tax under this section together with the tax payable under section 3 or section 4 would exceed the maximum amount of tax permissible under section 15 of that Act, the additional tax shall stand reduced to such amount as, together with the tax payable as aforesaid, equals the said maximum amount. (2) The State Government may by notification and subject to such conditions and restrictions, as it may impose exempt from the levy of additional tax, gross turnover in respect of any goods or class or description of goods." 9.. A perusal of these provisions shows that the Finance Act has provided for the levy of different types of commercial taxes which are generally leviable in the State of Bihar. 10.. The object of the Sugarcane Act says that it is an Act to regulate the production, supply and distribution of sugarcane intended for use in sugar factories and for taxation of sugarcane (emphasis supplied) and matters incidental thereto. Section 49(1)(b) of the Sugarcane Act reads thus: "49. Tax on suga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taxes generally, the Sugarcane Act empowers the levy of purchase tax only on sugarcane. In this background, there can be no doubt that the Legislature intended to enact a special enactment for the purpose of levy of purchase tax with reference to sugarcane under the Sugarcane Act to the exclusion of such levy under the Finance Act. Once we come to the conclusion that this is the intention of the legislation then the rule "general provision should yield to special provision" is squarely attracted. 13.. The next contention on behalf of the State, as noted above, is that the two enactments operate in different fields inasmuch as while the Finance Act is an enactment for the purpose of generating revenue for the State, the Sugarcane Act is enacted generally for the purpose of production, supply and distribution of sugar. The power of taxation contemplated under this Act is only incidental to further the object of section 49(8) of the Sugarcane Act. In other words, an attempt was made to contend that the tax which was levied and collected under section 49 of the Sugarcane Act was to be appropriated towards the requirements of the Board and the Council constituted under the Sugarcane A ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
