In a plea challenging the Constitutional Validity Of Goa Cess On Fluid Milk (Control) Act, 2000, the Supreme Court has issued a notice to the State Government.
The petitioner, a registered cooperative society of milk producers in the State of Goa, which also procures milk from neighbouring States, challenged Rule 3 of the Goa Cess on Fluid Milk (Control) Rules, 2001 on the ground that it is ultra vires the provisions in its parent legislation, i.e., 2000 Act, as well as the Article 304(a) of the Constitution of India, 1950. It also indicates that the levy of cess under the said Rule is prohibited as per Articles 286 and 246A of the Constitution. Relying on two judgment of High Court of Bombay, wherein it has been held that Rule 3 is discriminatory, the petition argues that the petitioner organisation is entitled to the refund of cess paid for the period from 2001-2003.
A Bench comprising Justices M.R. Shah and Krishna Murari issued notice in the petition only to the extent that it assails the relevant provisions of the 2000 Act and the competence of the State legislature to enact it and observed that “being a dispute with respect to the constitutional validity of the relevant provisions of the Goa Cess on Fluid Milk (Control) Act, 2000, only on that ground alone and the issue is with respect to legislative competence, issue notice returnable on 15.11.2022.”
Section 4 of 2000 Act contemplates that cess be levied on fluid upon the use of facilities, infrastructure, or any other amenities belonging to or provided by the State for consumption. However, Rule 3 goes beyond the ambit of Section 4 and levies cess on fluid milk brought into the State of Goa for sale.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to TaxscanAdFree. Follow us on Telegram for quick updates.
