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TMI Blog1955 (8) TMI 32X X X X Extracts X X X X X X X X Extracts X X X X ..... sari sugar out of sugar-cane grown by them. The other petitioners purchase 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 t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4 of the Act is an uncontrolled and unguided arbitrary power so that it 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 petition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble to lay down any guiding principles by the legislature itself. As far 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 paragr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtherance of this policy. It may be that there is a policy to encourage 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 d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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