TMI Blog1955 (8) TMI 32X X X X Extracts X X X X X X X X Extracts X X X X ..... se sugar-cane juice and prepare khandsari sugar and molasses out of that juice. The State Government has imposed a sales tax on the sale of khandsari sugar at the rate of 6 pies per rupee acting under the provisions of section 3A of the U.P. Sales Tax Act. Under section 4 of that Act, certain articles have been exempted from the sales tax by the Act itself and a power is given to the State Govern. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t may be said to be an unreasonable restriction on the petitioner's right to trade, it appears that this is not a power of imposing any disability on the petitioners or on anybody else but a power to exempt certain articles from the imposition of sales tax. Even if the power is held to be invalid, it would not help the petitioners in any manner but would only result in the articles, which have bee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r as the other ground is concerned, a number of articles have been mentioned in paragraph 8 of the affidavit, filed along with the petition, which have been exempted from payment of sales tax. Those articles are of a different kind and the considerations that apply to those articles may not apply to the case of sugar. In paragraph 14 of the affidavit it has been said that the State Government have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e cottage industry. That does not mean that every cottage industry must necessarily be exempted from the payment of sales tax. The producers of sugar may be able to make higher profits and the Government thought that they should pay sales tax of 6 pies per rupee. The fact that there has been an improper discrimination has been denied in the counter-affidavit and, on the facts and circumstances pro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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