Area-specific exemption notifications do not infringe the right to carry on business when issued for developmental purposes.

Area-specific or industry-specific exemption notifications issued for developmental purposes do not, by themselves, infringe the right to carry on business under Article 19(1)(g). The Court accepted that the Central Government has power to grant such exemptions, and rejected the challenge based on alleged discrimination between manufacturers in neighbouring States and the petitioners. The notifications were therefore upheld.

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Issues: Whether the exemption notifications issued by the Central Government were violative of the right to carry on business under Article 19(1)(g) of the Constitution of India.

Analysis: The challenge was founded on the plea that exemptions granted to manufacturers in certain neighbouring States, but not to the petitioners, infringed their business rights. The Court held that the power to grant exemption rests with the Central Government and that grant of area-specific or industry-specific exemption for developmental purposes does not amount to an invasion of the fundamental right under Article 19(1)(g).

Conclusion: The challenge failed and the notifications were upheld.

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