TaxTMI 
TaxTMI 
1987 (10) TMI 333
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....------------------ The judgment of the Court was delivered by K. JAGANNATHA SHETTY, J.-This is a petition under article 32 of the Constitution. The petitioner is engaged in the manufacture of khandsari sugar. The petitioner challenges the validity of the U.P. Khandsari Sugar (Levy) Order, 1981 ("Levy Order"). It was issued in exercise of powers under section 3 of the Essential Commodities Act, 1955 by virtue of delegation of power by the Central Government under section 5 of the said Act. The Levy Order requires khandsari manufacturing units to surrender levy of 50 per cent of the production by sulphitation units in the first process. The balance 50 per cent of that process with the total production by subsequent processes ....
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....e mind of the authorities specifying the price. But our examination will stop there. We will go no further. We will not deluge ourselves with more facts and figures. The assembling of the raw materials and the mechanics of the price fixation are the concern of the executive and we leave it to them. And, we will not revaluate the considerations even if the prices are demonstrably injurious to some manufacturers or producers. The court will, of course, examine if there is any hostile discrimination. That is a different 'cup of tea' altogether." This will be the parameters and the limitation of inquiry by courts whenever the price fixation of any essential commodity is called into question. The court does not act like a chartered accountant n....
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....If fair price is to be fixed leaving a reasonable margin of profit, there is never any question of infringement of fundamental right to carry on business by imposing reasonable restrictions. In determining the reasonableness of a restriction imposed by law in the field of industry, trade or commerce, it has to be remembered that the mere fact that some of those who are engaged in these are alleging loss after the imposition of law will not render the law unreasonable.' Similar view was taken by this Court in the case of Prag Ice & Oil Mills v. Union of India [1978] 3 SCR 293 where the Court speaking through Beg, C.J., observed as follows: 'It has also to be remembered that the object is to secure equitable distribution and availability at....
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....under the Essential Commodities Act. The primary object of the Act was to control the production, supply and distribution of essential commodities and to make such commodities available at a reasonable price. The preamble of the Act makes it clear. It reads: "An Act to provide, in the interest of the general public, for the control of the production, supply and distribution of, and trade and commerce in, certain commodities." The exercise provided under the Act was intended ultimately to serve the interest of consumers. It is fundamental in the entire scheme of the Act. But then, the interest of the industry as a whole cannot be left out. It is also required to be borne in mind. The levy price of sugar should ensure reasonable return to t....