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1989 (5) TMI 56 - SC - VAT and Sales TaxValidity of the levy of cess in respect, of tea estates under the West Bengal Rural Employment and Production Act, 1976 challenged Held that:- For bringing the legislation within the saving provisions of article 304(b), it is necessary that the Bill or amendment should have been introduced or moved in the Legislature of the State with the previous sanction of the President. It is not disputed that the amendments to the West Bengal Act made in 1981 and 1982, did not satisfy that requirement. Indeed, it appears that the West Bengal Government had sent an earlier Bill to the President with the object of levying a tax, on the income from tea but the Presidential assent was not granted. It appears further that the Finance Minister of West Bengal made a statement in the West Bengal Legislature on February 27, 1981, stating that he would introduce the rural employment cess on despatches of tea. He referred to a Bill for amending the West Bengal Marketing (Regulation) Act, 1972, having been sent to the President and the President not having signified his consent to the amendment. Thus the impugned provisions brought into the West Bengal Act by the amendments in 1981 and 1982 so far as they purport to relate to tea estates are unconstitutional and void and cannot be given effect to. Appeal allowed & the petitioners are held entitled to the refund of cess paid by them under the impugned statutory provisions.
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