Special statute prevails over general trade tax law where molasses is already covered by a specific levy scheme.

A special levy on molasses under the Uttar Pradesh Sheera Niyantran Adhiniyam, 1964 was treated as a tax on sale, and the special statute was held to govern the field over the general U.P. Trade Tax Act, 1948. Applying the principle that a special law prevails over a general taxing law, the Court held that molasses could not be subjected again to trade tax under the general enactment when the special scheme already covered the commodity. The impugned Tribunal order was set aside and the revisions were allowed.

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Issues: Whether molasses was taxable under the U.P. Trade Tax Act, 1948 despite the special regime under the Uttar Pradesh Sheera Niyantran Adhiniyam, 1964, and whether the administrative charges on molasses under section 8(4) of the Adhiniyam were in substance tax on sale so as to exclude levy under the general trade tax law.

Analysis: The levy under section 8(4) of the Uttar Pradesh Sheera Niyantran Adhiniyam, 1964 was treated as an impost on the sale of molasses and, following the constitutional meaning of taxation, was regarded as tax. The legislation was a special enactment dealing specifically with molasses, whereas the U.P. Trade Tax Act, 1948 was a general taxing statute applicable to commodities generally. Applying the principle that a special law governs over a general law, and relying on the scheme of the enactments and the nature of the levy, the Court held that the general trade tax law could not override the special molasses control statute.

Conclusion: The levy on molasses could not be sustained under the U.P. Trade Tax Act, 1948 in the face of the special statutory scheme under the Uttar Pradesh Sheera Niyantran Adhiniyam, 1964, and the revisions were liable to succeed.

Final Conclusion: The impugned order of the Trade Tax Tribunal was set aside and the revisions were allowed, with no order as to costs.

Ratio Decidendi: Where a special statute creates a specific levy on a particular commodity, the general taxing statute yields, and the same subject cannot be brought to tax again under the general law if the special enactment occupies the field.

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