GOBIND SUGAR MILLS LTD vs STATE OF BIHAR

The Supreme Court ruled that the State of Bihar cannot levy purchase tax on sugarcane under both the Bihar Finance Act, 1981 and the Bihar Sugarcane (Regulation of Supply & Purchase) Act, 1981, as the latter is a special enactment that should prevail over the general provisions of the Finance Act. The Court held that the purchase tax under the Sugarcane Act is specifically intended for the regulation of sugarcane and cannot be duplicated under the Finance Act. Consequently, the appeals were allowed, overturning the High Court's decision.