SHETKARI SAHAKARI SAKHAR KARKHANA LTD., SANGLI, MAHARASHTRA vs THE COLLECTOR OF SANGLI AND OTHERS

The Supreme Court upheld the validity of the Sugarcane Cess (Validation) Act, 1961, stating that Section 3 of the Act re-enacts provisions of the Bombay Sugarcane Cess Act, 1948, allowing for the recovery of cess previously assessed under the State Act. The Court clarified that the Central Act does not merely validate past actions but provides a new legal basis for recovery, thus addressing the concerns raised in Diamond Sugar Mills Limited v. State of Uttar Pradesh. The appeals challenging the cess imposed were dismissed, affirming the authority of Parliament to legislate retrospectively under Entry 97 of List I of the Seventh Schedule of the Constitution.