1999 (3) TMI 637

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....the manufacture of sugar through vacuum-pan process. It established the distillery and chemical units for purposes of manufacturing acetie acid. The distillery unit is situate within the premises of the petitioner's mill at Dhampur itself. It is stated by the petitioner that the chemical plaint is one integrated unit consisting of a captive distillery and the main plant (for manufacturing of chemicals). 2. In the captive distillery, the petitioner manufactures industrial alcohol out of molasses. The industrial alcohol so manufactured is consumed by the petitioner for manufacturing chemicals in its chemical unit. The petitioner transfers the industrial alcohol to its chemical plant through closed and sealed pipelines. It does not sell....

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....ol manufactured by it in its distillery and consumed by it in manufacture of chemicals in its chemicals unit, the petitioner disputes its liability to pay any tax to the respondents. 3. The plea of the petitioner is that no purchase tax under the provisions of U.P. Sales of Motor Spirit, Diesel Oil and Alcohol Taxation Act, 1939 (hereinafter referred to as the Act), can be levied upon such industrial alcohol which the petitioner manufactures and consumes captively in its chemical plant. 4. In the counter affidavit filed by Shri R. K. Srivastava on behalf of respondents, it has been admitted that the chemical unit and distillery unit of the petitioner are in the same premises and are Integrated Unit. However, the respondents allege tha....

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....hol from the Distillery Unit to the Chemical Unit of the petitioner. This Court vide judgment and order dated 8th May, 1997, allowed the aforesaid writ petition and heldthatthe petitioner-therein, is not liable to pay any purchase tax on transfer of alcohol from Distillery to its chemical factory for being consumed in the manufacture of chemical. The State of U. P. and other respondents filed petition (s) for Special Leave to Apeal (Civil). CC 8372-8373 of 1997 before the Hon'ble Supreme Court against the aforesaid judgment and order dated 8th May, 1997 passed in Civil Misc. Writ Petition No. 679 of 1992, M/s. Vam Organic ChemicalsLimited and another (supra). The Hon'ble Supreme Court vide order dated 17th November, 1997 had dismiss....

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....no question of passing on the burden of purchase tax to the consumers as such nor the petitioner can be said to have realised the purchase tax from its customers which it had paid on industrial alcohol. The Hon'ble Supreme Court in the case of Bhadrachalam Paperboards Ltd. and Another v. The Government ofAndhra Pradesh and Others, reported in JT 1998 (5) S.C. 314:1998 U.P.T.C. 987 (SC), while considering the question of unjust enrichment and refund of tax paid by a person on the raw material which it had consumed in manufacturing of finished products, had held that appellants-therein have consumed goods for manufacturing of papers board etc., and, therefore, the question of the appellants passing on the tax liability to the consumers wo....