TMI Blog1972 (7) TMI 88X X X X Extracts X X X X X X X X Extracts X X X X ..... Sugar Co. Ltd., Dabra, runs a sugar factory at Dabra for the manufacture and sale of sugar since 1941. It obtains supply of sugarcane for manufacture of sugar from various sugarcane growers. The company was assessed to sales tax under the Madhya Pradesh General Sales Tax Act, 1958 (hereinafter referred to as "the Sales Tax Act"), as well as to purchase tax under the Madhya Pradesh Sugarcane (Purch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e were not of a voluntary nature and as such did not amount to sale and, therefore, sales tax could not be levied in respect thereof. The petitioner also prayed for a writ of mandamus directing the State Government to consider the case of the petitioner for remission of tax under the Purchase Tax Act. 3.. The contention that the provisions of the Purchase Tax Act are ultra vires and as such void ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was that the action of the Government in rejecting the petitioner's application for remission of purchase tax was arbitrary and illegal and was, therefore, liable to be quashed. From paragraph 16 of the return filed by the State Government, it would appear that the application for remission in respect of the year 1964-65 was rejected because the loss during the previous year was attributable to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ously running into loss due to under-crushing or purchase of cane yielding low sugar recovery. The function of the Government in exercise of this power is purely administrative and it can be challenged only when it is mala fide, discriminatory or for reasons not germane to the exercise of the power. The only ground on which the learned counsel for the petitioner impeached the action of the Governm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other point was pressed before us. The petition, therefore, fails and is hereby dismissed. Since this petition was filed in the year 1967, before some of the important questions raised in this petition were finally settled by the decisions of the Supreme Court referred to above, we hereby direct that the parties shall bear their own costs. Petition dismissed. - - TaxTMI - TMITax - CST, VAT ..... X X X X Extracts X X X X X X X X Extracts X X X X
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