Joara Sugar Mills Private Ltd. vs State Of Madhya Pradesh And Ors. on 24 September, 1963
In reply, learned Attorney General appearing for the union of India asserted the authority of Parliament to enact the law in question by saying that as held by the supreme Court in, Diamond Sugar Mills' case, AIR 1961 sc 652 (supra) there was no entry in tne State List or tne Concurrent List under which the various Acts enumeratea in Section 2(b) of the Act imposing the cess could fall; and that, therefore, a legislation with regard to the imposition and collection of those cesses on sugarcane could valloly be enacted by Parliament under Article 248 read with Entry 97 of List I.
It was said that though the Act was described as an "Act to validate the imposition and collection of cesses on sugarcane under certain State Acts", it was in SUDS-tance a legislation not validating the imposition and collection made under State Acts, but one imposing under tne legislative sanction of Parliament cesses at the rate in the manner imposed, assessed or collected by tna various States under the relevant State Acts, and sne imposition in any State was for the period before tne commencement of the Act in that State during which tne cess was imposed, assessed or collected unaer trie State Act, albeit invaiidly; and that Parliament had the power to make a retrospective imposition of a tax and to pass a legislation for that purpose having effect tor a short period.