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TMI Blog1988 (2) TMI 450X X X X Extracts X X X X X X X X Extracts X X X X ..... espondent was registered as a company under the Companies Act. After it was converted into a Co-operative Federation, G.O. Ms. No. 1240 was amended by G.O. Ms. No. 1200 dated 2nd September, 1983 substituting the name of the Co-operative Federation in the place of the Corporation. Baby food is exigible to sales tax at 5 per cent at the point of first sale in the State, as per entry 44 of the First Schedule to the A.P. General Sales Tax Act. The petitioner, Food Specialities Ltd., is engaged, inter alia, in the manufacture and marketing of baby milk foods under two brand names, "LACTOGEN Infant Formula", and "LACTOGEN Full Protein Follow-up Formula". The petitioner complains that granting of exemption to the 4th respondent's product alone is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he country, and its milk food products have been in the market over a long number of years, and quite well-known. It would thus be seen that the exemption granted under the impugned G.O. in favour of the 4th respondent is really in the nature of a concession, or a form of subsidy, as it may be called. Extending such concessions, subsidies, and several other benefits in various forms to new industries, industries in a particular sector, and industries established in particular areas, is a well-accepted feature of Indian economy. The Income-tax Act contains several such benefits/ concessions. There are several G.Os. of the Central and the State Governments granting several types of subsidies to various industries. In the circumstances, ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l decisions rendered with respect to article 14 of the Constitution, and we do not think it necessary to repeat the same. It is sufficient to mention that according to the said decision, Corporations owned and controlled by a State constitute a class distinct from individual traders and manufacturers in the same field. It may also be mentioned that in this case the 4th respondent is a co-operative society registered under the Co-operative Societies Act, besides being, in truth and in effect, a Government-owned organisation. It needed encouragement in this line of products. And also because it is run on a "no-profit no-loss" basis, the exemption granted in its favour cannot be held to be discriminatory or bad. The second contention is that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issued in favour of only one person is not warranted by clause (ii) of sub-section (1) of section 9. We are unable to see any substance in the above reasoning. The power of exemption is in the nature of conditional legislation. It is not treated as delegated legislation (vide Hamdard Dawakhana v. Union of India AIR 1960 SC 554, and Jalan Trading Company v. Mill Mazdoor Sabha AIR 1967 SC 691). It is a power conferred upon the Governments by various taxing enactments to provide for, and meet various types of situations not contemplated by the Act. Under clause (i) of sub-section (1) of section 9, it is open to the State Government to exempt, either partly or wholly, any specified class of goods from sales tax. In such a notification, there s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clauses. There is no such prohibition. In any event, so far as the notification in question is concerned, it is clearly one falling under clause (ii) of sub-section (1), and not under both the clauses. It should also be remembered that even a single person may constitute a class, having regard to the circumstances in which he is placed (vide Ram Krishna Dalmia v. S.R. Tendolkar AIR 1958 SC 538). In view of our conclusion that the notification in question falls under clause (ii) of sub-section (1) of section 9, and not under clause (i) of subsection (1), it is unnecessary to deal with the argument of Sri Ratnakar, the learned counsel for the petitioner, based upon the language of clause (i). He brings to our notice that section 8-A of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... absence of the words "specified goods" in section 9(1)(i) does not in any manner curtail the power of exemption inhering in the Government, as is sought to be made out by the learned counsel for the petitioner with reference to the language employed in other sales tax enactments. For the above reasons, the writ petition fails and is, accordingly, dismissed; but, in the circumstances, without costs. The learned counsel for the petitioner makes an oral request for grant of leave to appeal to the Supreme Court under article 133 of the Constitution. We do not, however, think that this case involves a substantial question of law of general importance, which in our opinion, needs to be considered by the Supreme Court. Oral request is accordi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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