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1986 (5) TMI 251 - SC - VAT and Sales TaxTwo notifications dated January 25, 1975, issued under section 14 of the U.P. Sugarcane (Purchase Tax) Act, 1961 challenged - petitioners also sought a mandamus directing the State Government to grant remission in purchase tax of 0.51 paise per quintal to all the sugar factories situated in the State of U.P. Held that:- Appeal dismissed. The remission was granted only to the factories where the recovery from the sugarcane was low to enable the factories to make timely payments towards the cost of sugarcane and non-payment of the cane prices affecting the supply of cane to factories. The immediate factor affecting the economy is the recovery of sugar from sugarcane and the sugar content in the cane produced goes a long way to determine the cost of sugar. Thus the sugar factories which were purchasing sugarcane yielding low recovery are distinguishable as a class separately from those which did not fall in it and there was a reasonable basis to classify those left out of that group.
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