1972 (7) TMI 88

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.... RAINA, J.-This is a petition under article 226 of the Constitution of India. 2.. The petitioner, the Gwalior Sugar Co. Ltd., Dabra, runs a sugar factory at Dabra for the manufacture and sale of sugar since 1941. It obtains supply of sugarcane for manufacture of sugar from various sugarcane growers. The company was assessed to sales tax under the Madhya Pradesh General Sales Tax Act, 1958 (here....

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....is not leviable. As regards sales tax, it has been urged that the transactions regarding the purchase of sugarcane were not of a voluntary nature and as such did not amount to sale and, therefore, sales tax could not be levied in respect thereof. The petitioner also prayed for a writ of mandamus directing the State Government to consider the case of the petitioner for remission of tax under the Pu....

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.... and Others[1972] 29 S.T.C. 246 (S.C.); A.I.R. 1972 S.C. 87. 4.. Thus, the only point that was pressed before us was that the action of the Government in rejecting the petitioner's application for remission of purchase tax was arbitrary and illegal and was, therefore, liable to be quashed. From paragraph 16 of the return filed by the State Government, it would appear that the application for re....

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....t is satisfied that it is necessary to do so in public interest with a view to assisting factories which are continuously running into loss due to under-crushing or purchase of cane yielding low sugar recovery. The function of the Government in exercise of this power is purely administrative and it can be challenged only when it is mala fide, discriminatory or for reasons not germane to the exerci....