AIR 1974 SUPREME COURT 1745 ::1974 TAX. L. R. 2036 ::1974 SCC (Tax) 207 ::1974 SCC (Tax) 206 ::1974 (1) SCC 534 ::33 STC 277 ::1974 2 SCR 787

Supreme Court Of India

(From : Andhra Pradesh)

Hon'ble Judge(s): A. N. Ray, H. R. Khanna, K. K. Mathew, A. Alagiriswami, P. N. Bhagwati , JJJ

Index Note :- (A) Andhra Pradesh Sugarcane (Regulation of Supply and Purchase) Act (45 of 1961) , S.21(3)— Exemption from payment of tax on purchase of cane - Powers of State Government - Exercise of discretion - Government if justified in laying down a policy of granting exemption only to co-operative sugar factories. X-Ref :- Constitution of India , Art.14— Brief Note :(A) Per Majority (K. K. Mathew and P. N. Bhagwati, JJ. contra). The purpose of the Act is to encourage new sugar factories and expanded sugar factories. The discretion has been left to the State to decide whether any particular factory should be granted exemption or not. But how that power is to be exercised will have to be decided by taking into consideration all the relevant factors relating to the sugar Industry. It is well known that there is difference in the sucrose content in the cane produced in different areas.(Para 6) It would be open to the State Government to grant exemption to new factories only but not the expanded factories to grant exemption for one year instead of three years or two years as contemplated under the section, to grant exemption to factories in one area but not to factories in another area, to grant exemption during a particular period but not during another period. It is open to Government to adopt a ....