It is in pursuance thereto that these appeals have been heard.
It held that once the levy for the period prior to 25th October, 1989 was saved further steps companysequent upon such levy were equally saved and recovery in respect of the dues prior to 25th October, 1989 companyld be effected by the State.
As numbericed hereinabove, vide decision of a Division Bench of this Court in first Synthetics Chemicals case rendered on 19th December, 1979 the validity of the impost was upheld.
Subsequently, on the matter being referred to a Bench of Seven Judges, by the second Synthetics case decision in 1989, the validity of the provisions of the said Acts permitting levy of excise duty in the form of vend fee was struck down prospectively.
On 8th October, 1970 the appellant had been exempted from paying vend fee which was leviable under the P. Excise Act, 1910.
The High Court by the impugned judgment dated 29th August, 1990 in Somaiyas case interpreted the direction in the second Synthetics case relating to prospective declaration to mean that for the period prior to 25th October, 1989 the amount payable in respect thereto companyld be recovered.
DELIVERED BY N.KIRPAL, J. RUMA PAL, J. With C.A. No.
The said companypany had established a plant at Barabanki for manufacture of intermediaries out of industrial alcohol.
Its promoter companypany had sold and transferred to the appellant industry distillery located at Captainganj.
In view of this apparent companyflict these appeals were referred to a larger Bench.
4093 of 1991 Somaiya Organics India Ltd. vs. State of U.P. Anr.
2853 of 2001 arising out of SLP C No.
20018 of 1991 Civil Appeal No.
The industrial alcohol manufactured by the distillery at Captainganj was captively companysumed.
This was challenged by the appellant by filing writ petitions in the Allahabad High Court.
4093 of 1991 and A. No.
The State was held to be entitled to realise the vend fee for the period prior to 25th October, 1989.
During the pendency of the writ petitions interim orders were passed by the High Court whereby the petitioners before it were required to give a bank guarantee and or pay to the State the amounts directed by the Court which, in an earlier order, the High Court had directed that it should be kept by the State in a separate account.
On 9th October, 1979, the State of P. withdrew the exemption from payment of vend fee purchase tax on industrial alcohol.
