TMI Blog2013 (6) TMI 55X X X X Extracts X X X X X X X X Extracts X X X X ..... (10) TMI 583 - ALLAHABAD HIGH COURT] it cannot be said that the State was unaware that molasses is not taxable under the U.P. Trade Tax Act. The action of the opposite parties in collecting and realising the trade tax from the petitioner on the purchase of molasses from various Sugar Mills in the State of U.P. subsequent to the dismissal of Special Leave Petition in State of U.P. and others v. D.S.M. Group of Industries & another [2003 (3) TMI 665 - SUPREME COURT] is arbitrary, illegal and unjust. Thus the petitioner is entitled for the refund. As during the pendency of the special appeal before Hon'ble Supreme Court[2010 (3) TMI 933 - SUPREME COURT] the decision of the Division Bench of this Court, has not been stayed by the Hon'ble Su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s that U.P. Sheera Niyantran Adhiniyam, 1964 is the Special Act and the same has been enacted for control of storage, gradation and price of molasses produced by sugar factories in the State of U.P. and the Regulation of supply and distribution thereof. Section (5) of Section 7-A of the Act provides that occupier shall be entitled to receive from the person to whom the molasses is sold or supplied an amount equivalent to the amount of such administrative charges, in addition to the price of molasses. Petitioner's counsel further alleges that the State Government is already charging taxes from the petitioner under the U.P. Sheera Niyantran Adhiniyam, 1964, which is the special enactment for molasses only and as such, under the U.P. Trade T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... realised and collected by the opposite parties on the purchase of the molasses through Sugar Mills of the State of U.P. subsequent to 10.3.2003. 19. In the result, the writ petition succeeds and is partly allowed. The opposite parties on the basis of the Notification dated 7.9.1981 issued under the provisions of the U.P. Sales Tax Act, 1948 now U.P. Trade Tax Act read with Section 21 of the U.P. General Clauses Act, 1904 shall not realise any trade tax from the petitioner on the purchase of molasses. 20. The opposite parties shall refund the amount of trade tax which was realised by them through the Sugar Mills subsequent to 10.03.2003. The petitioners shall submit the details of the tax which the opposite parties have realised from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Court except providing by interim measure that there will be stay on refund and in case the assessee succeeds in the appeal, it would be entitled to interest which would be imposed on the State at the final hearing of the matter. In view of the above, we dispose of the instant writ petition finally in terms of the Division Bench judgment of this Court in the case of 2008 NTN (Vol. 38) 296: M/s. SAF Yeast Company Private Limited. Vs. State of U.P. and another, read with interim order passed by the Hon'ble Supreme Court dated 8.3.2010 (supra). The benefit of the present order shall be subject to final outcome of pending appeal in the Hon'ble Supreme Court. During the pendency of the special appeal before Hon'ble Supreme Court, we provid ..... X X X X Extracts X X X X X X X X Extracts X X X X
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