Case Summary: M/s. Somaiya Organics (India) Ltd. vs State of U.P. (2001)
Citation: (2001) 5 SCC 519 | Date of Decision: 17-04-2001
Case No.: I.A. Nos. 1 and 3 in W.P. (C) No. 1892 of 1991
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Law Points Raised:
1. Whether vend fee levied under State excise law on industrial alcohol can be collected for the period prior to its prospective invalidation by the Supreme Court.
2. Interpretation of prospective overruling under Article 141 and enforcement limitations under Article 142.
3. Applicability of Article 265 regarding levy and collection of tax without authority of law.
4. Extent of State legislative and executive competence over industrial alcohol under Entries 51 & 84 of the Constitution's Lists.
Ratio Decidendi:
The Court held that the vend fee levied under the now-invalidated provisions could be recovered for the period prior to 25 October 1989, as per the doctrine of prospective overruling laid down in the Synthetics and Chemicals case. The judgment reaffirmed that no refunds would be given for levies paid, and collections withheld under interim orders must still be remitted to the State.
Final Ruling:
The Supreme Court upheld the High Court’s view and allowed the State of U.P. to recover vend fees on industrial alcohol for the period prior to 25 October 1989. The appeal was dismissed, reaffirming the applicability of the prospective overruling doctrine and the enforcement of pre-1989 dues.
Relevant Paragraph Numbers:
• 2–6: Background of vend fee levy and earlier court orders.
• 7–9: High Court's interpretation of Synthetics and Chemicals case.
• 13–16: Clarification on prospective overruling and right of State to recover dues.
• 17: Article 142 vs constitutional/statutory provisions.
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