- (1.) This appeal by special leave impugns the judgment of the High court at Allahabad whereby the writ petition filed by the appellant was dismissed andthe U. P. Sales of Motor Spirit, Diesel Oil and Alcohol Taxation (Amendment) Act, 1976 was upheld.
(2.) The appellant carries on the business of printing and processing wrappers used as flexible packing material. For the purposes of such printing and processing the appellant purchases and uses denatured spirit, which is an alcohol.
(3.) On 23/4/1974 the governor of the respondent-State issued an Ordinance (9 of 1974 called the U. P. Sales of Motor Spirit, Diesel Oil Taxation (Amendment) Ordinance whereby alcohol was added as a taxable commodity in the U. P. Sales of Motor Spirit, Diesel Oil and Alcohol Taxation Act, 1939 and tax was sought to be levied on the first sale of alcohol with effect from 2/5/1974. This Ordinance, later on enacted as U. P. Act 12 of 1974, amending the Act of 1939, was challenged by M/s Kesar Sugar Works Limited before the Allahabad High court. On 11/7/1975 the Allahabad High court held inter alia that the said Ordinance and Act of 1974 insofar as they referred to alcohol were bad in law and quashed the same.;