SARASWATI SUGAR MILLS versus HARYANA STATE BOARD AND ORS.

SARASWATI SUGAR MILLS versus HARYANA STATE BOARD AND ORS.

Sugarcane is not a vegetable as understood in common parlance nor is sugar manufacturing industry covered by 'processing of animal or vegetable products industry' under Entry 15, Schedule I, of the Cess Act. Strict interpretation of the fiscal statute excludes sugar manufacturing from water cess liability under this entry. Manufacture of alcohol from molasses is likewise excluded.

Parties
Appellant: Saraswati Sugar Mills; Respondent: Haryana State Board and Ors.
Jurisdiction
India
Judgment Date
22 October 1991
Procedural Posture
Civil Appeal / Appeal From Punjab & Haryana High Court Judgment Dated 25.8.1989 in Civil Writ Petition No. 2635 of 1989, Batch With Writ Petitions and Transfer Petitions
Outcome
Civil appeals by sugar mills, writ petition and transfer cases allowed; water cess liability under Entry 15 set aside. Contrary appeals dismissed. Rule Nisi made absolute.
Legal Topics
Interpretation of 'vegetable' and 'processing' in Water (prevention and Control of Pollution) Cess Act, 1977; Scope of Entry 15, Schedule I; Levy of Water Cess on Sugar Manufacturers
Tax Law Environmental Law Statutory Interpretation Interpretation of 'vegetable' and 'processing' in Water (prevention and Control of Pollution) Cess Act, 1977; Scope of Entry 15, Schedule I; Levy of Water Cess on Sugar Manufacturers

Case Brief

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Parties

Saraswati Sugar Mills

Appellant

Haryana State Board and Ors.

Respondent

Procedural Posture

Civil Appeal / Appeal From Punjab & Haryana High Court Judgment Dated 25.8.1989 in Civil Writ Petition No. 2635 of 1989, Batch With Writ Petitions and Transfer Petitions

Legal Issues

  1. 1 Whether sugar manufacturing industry falls under Entry 15 of Schedule I ('processing of animal or vegetable products industry') of the Water (Prevention and Control of Pollution) Cess Act, 1977
  2. 2 Whether sugarcane is a 'vegetable' within the meaning of Entry 15, Schedule I, for the purpose of water cess liability
  3. 3 Whether manufacture of alcohol from molasses (a by-product) falls within Entry 15

Ratio Decidendi

Sugarcane is not a vegetable as understood in common parlance nor is sugar manufacturing industry covered by 'processing of animal or vegetable products industry' under Entry 15, Schedule I, of the Cess Act. Strict interpretation of the fiscal statute excludes sugar manufacturing from water cess liability under this entry. Manufacture of alcohol from molasses is likewise excluded.

Court Disposition

Civil appeals by sugar mills, writ petition and transfer cases allowed; water cess liability under Entry 15 set aside. Contrary appeals dismissed. Rule Nisi made absolute.

Orders

  • Civil Appeals (arising out SLP Nos. 15828 of 1989, 7496 of 1989, 778, 814, 830, 1286, 1433 of 1990, and SLP of 1991, Writ Petition No. 77 of 1990, and Transfer Cases (C) Nos. 6 of 1986 and 91 of 1989 allowed
  • Civil Appeals (arising out of SLP Nos. 9558-62 of 1988) dismissed