2001 (8) TMI 119

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....control of storage, gradation and price of molasses produced by sugar factories and the regulation of supply and distribution thereof in Uttar Pradesh. Section 8(4) of the Act provides that the occupier of a sugar factory shall be liable to pay to the State Government administrative charges at such rate, not exceeding five rupees per quintal as the State may from time to time notify, on the molasses sold or supplied by him. Section 5 of the Act enables the occupier to recover from the person to whom the molasses is sold or supplied an amount equivalent to the amount of administrative charges in addition to the price of molasses. 2.The Assistant Commissioner of Central Excise by his order held that the administrative charges collected by ....

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....ocal authorities under statutory powers. It is not disputed before the Tribunal that the administrative charges at the rate of Rupees 5 per quintal on molasses sold or supplied by the respondents to the State Government is a levy made under the statute passed by the State Legislature. In view of the wide interpretation to be given to the expression "tax", the Tribunal found no reason to interfere with the order made by the Commissioner (Appeals) and dismissed the appeal. Following this decision several cases have been disposed of and they are all in appeal before us. 3.In Cape Brandy Syndicate v. IRC, (1921) 1 KB 64, it is observed : "In a taxing Act one has to look merely at what is clearly said. There is no room for any intendment. ....

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.... time and place of removal, where the buyer is not a related person and the price is the sole consideration for the sale. He submitted that the normal price will include the administrative charges and, therefore, will have to be included for the purpose of ascertaining the assessable value and Section 4(4)(d)(ii) of the Act is not attracted at all. 6.Shri Shanti Bhushan and Shri D.A. Dave, the learned Senior Advocates appearing for the respondents, supported the view taken by the Tribunal and contended that the administrative charge is in the nature of a "tax" and, therefore, stands excluded from the definition of "assessable value" as provided under Section 4(4)(d)(ii) and commended to us that we should affirm the order made by the Trib....