LexGOODRICKE GROUP LTD. ETC. versus STATE OF WEST BENGAL AND ORS.
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A B c D E F G H GOODRICKE GROUP LTD. ETC. v. STATE OF WEST BENGAL AND ORS. NOVEMBER 25, 1994 [B.P. JEEVAN REDDY, SUHAS C. SEN AND K.S. PARIPOORNAN, JJ.] Constitution of India-Entry 249, List II, Seventh Schedule-West Bengal Taxation Laws (Section Amendment) Act 1989-Sections 2, 3, amending West Bengal Primary Education Act 1953 and West Bengal Rural Employment Production Act 1976, Section 4-Cess on tea estates levied annually assessed on the basis of plucked and unprocessed green tea /eaves-Whether cess is levy on land or tax on production of tea-Held, calculation of cess on the basis of yield is accepted mode of levy of tax on /and-Cess is upon 'tea estate' quantified on basis of quantum of produce of tea estate-It is not cess on production-State legislature, therefore, has power to levy impugned cess-India Cement case, which held cess on royalty to be beyond r:ompetence of State legislature, distinguished-Entry 45, List JI, Seventh Schedule_:_Legislature competence-Precedent. Constitution of India-Entry 249, List JI, Seventh Schedule-Pith and substance-Legislative lists-Held, where there are three lists containing large number of entries, overlapping inevitable-Rule of pith and substance to be applied to determine the entry to which given legislation relates- Once determined, any incidental trenching on field reserved to other legislature of no consequence-Power of legislature to make law with reference to entry 249, List JI is plenary-Interpretation of statutes- Legislative competence. Constitution of India-Entry 249, List JI, Seventh Schedule-Levy on land-Incidents of-Held, tax need not be uniform or constant over number of years-Held further, tax may be based on current years income- Removing produce of the land from plant or tree before assessing tax doesn't alone sever connection between land and tax-Making person in possession of land or building liable for payment of tax, held, is well-known feature of enactments relatable to ~ntry 249, List II-Labour and capital investment on land in producing yield or income does not alter character of tax on /and-Prescribing uniform method of levy of cess not discriminatory-Taxing statutes-Statute law. 120 GOOD RICKE GROUP v. STA TE 121 West Bengal Taxation Laws (Second Amendment) Act 1989- A Retrospectivity-Rectified and remedied enactment given retrospective effect for period covered by anterior provisions which were struck down, held, valid Constitution of India-Entry 52, List I, Seventh Schedule-Tea Act 1953-Sections 2 and 25-West Bengal Taxation Laws (Second B Amendment) Act 1989-.:.Section 4-Whether declaration under Tea Act affects competence of legislature to levy cess on land comprised in tea estate-Held. Tea Act concerned with tea industry, whereas impugned cess is on land comprised in tea estate-State legislature's competence upheld-- Pith and substance. Statute Law-Validity-Held, validity of laws to be judged with reference to ordinary, prudent person. c The West Bengal legislature enacted the West Bengal Primary Education Act, 1953 and the West Bengal Rural Employment and Production Act, 1976 to provide for primary education throughout the D State and to provide employment in rural areas, respectively. For raising funds for the said purposes, the State legislature imposed two cesses upon certain lands and buildings in the state. By the West Bengal (Taxation Laws) Amendment Act, 1981, tea estates were carved out as a separate category of immovable properties on which cess was levied. The separate rate prescribed therefore was based upon the despatches E from the tea estates on the tea grown therein, and the state government was empowered to make certain exemptions in this regard. This amendment was questioned by a number of tea estates in writ petitions and decided by a two-member Bench of this Court in Buxa Dooars Tea Co. Ltd v. State of West Bengal, [1989) 3 SCC 211. This Court found that the levy was essentially upon despatches F though purporting to be a levy upon the tea estates. They pointed out further that the quality of tea produced in all tea estates in the state was not uniform, that there was no nexus between the tea estate and the· varied treatment accorded in respect of despatches of the different kinds of tea. The amendment was accordingly held to be violative of G Article 301 of the Constitution. Further, referring to the Tea Act, 1953 by which Parliament assumed contr
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