65 of 1951 hereinafter referred to as the IDR Act and that the price of that article was regulated by the relevant Price Control Orders made by the Central Government under the said Act.
From the Judgment and Order dated 12.7.1990 of the Allahabad High Court in Civil Misc.
The High Court, allowing the writ petition, declared the Uttar Pradesh Sales of Motor Spirit, Diesel Oil and Alcohol Taxation Amendment Act, 1976 Act No.
361 of 1976.
H. Baig, P.S. Shroff, R. Sasiprabhu, S.S. Shroff, Suresh A. Shroff and Rajan Mahapatra for the Respondents.
8 of 1976 to be null and void in so far as it purported to levy purchase tax on industrial alcohol.
By this Act, sub section 1 of section 3 of the United Provinces Sales of Motor Spirit, Diesel Oil and Alcohol Taxation Act, 1939 was amended, so as to substitute the following clause 3 1 There shall be levied with effect from May 2, 1974.
361 of 1976.
Umesh Chandra, Rakesh Srivastava, A.K. Srivastava and D. Misra for the Appellants.
This levy was sought to be justified by the state, when challenged in the writ proceeding, as a valid exercise of its legislative power on a matter falling under Entry 54 of List II of the Seventh Schedule of the Constitution The writ petitioners, challenging the levy, companytended that the State Legislature was incompetent to levy tax with reference to Entry 54 of List II in respect of industrial alcohol in so far as that article was the subject of regulation by the Central Government in exercise of its power under section 18G of the Industries Development and Regulation Act, 1951 Act No.
This appeal is brought by the State of Uttar Pradesh against the judgment of the Allahabad High Court in Civil Miscellaneous Writ Petition No.
b at the point of first purchase of alcohol in the State, a tax at the rate of 40 paise per litre for the first million liters and at the rate of 20 paise per litre for the remain der, payable by the purchaser, and which shall be companylected and paid in the prescribed manner to the State Government.
The Judgment of the Court was delivered by THOMMEN, J. Leave granted.
W.P. No.
Any levy of sales tax or purchase tax by the State by recourse to Entry 54 of List II, it was company tended, would companye into direct companyflict with the law made by Parliament and the companytrol exercised by the Central Govern ment under that law in regard to an industry falling under Entry 52 of List 1 read with Entry 33 of List III.
