Verma, J. - (1.) The challenge in these appeals is to a part of the Notification No. S.O. 153/H.A.20 73/S.13/87 dated 30-12-1987 (Annexure P-2) which grants exemption from the payment of sales tax to the Khadi Ashram, Panipat and its centralised units functioning within the State of Haryana in exercise of the powers conferred by sub-sec. (I) of 13 of the Haryana General Sales Tax Act, 1973 (for short "the Act"), but limits the exemption to the other co-operative societies and persons to their turnover not exceeding rupees five lakhs in a year. An earlier notification dated 10-8-1973 (Annexure P-1) granting exemption to the other co-operative societies has been modified to this extent by Annexure P-2. Annexure P-2 has been brought into force w.e.f. 1-1-1988. Thereafter, by notification dated 14-9-1992 brought into force w.e.f. 1-4-1992, the exemption limit of rupees five lakhs has been raised to rupees 30 lakhs. There is no grievance for the period subsequent to 1-4-1992. The only question, therefore, is:Whether the classification made between the Khadi Ashram, Panipat and its units and the other co-operative societies is discriminatory and violative of Art. 14 of the Constitution of India
(2.) The High Court has held that there is no discrimination inasmuch as the total exemption granted to the Khadi Ashram and its units while granting a limited exemption to others is a permissible and valid classification. Hence these appeals by special leave.
(3.) Shri B. Vishwanatha Iyer, learned counsel for the appellants has reiterated the ground of discrimination to challenge the limit imposed in Annexure P-2 dated 30-12-1987 in respect of the other co-operative societies. However, learned counsel also submitted that the challenge now survives only in respect of appellant No. 2 M/s. Swastic Hand-made Papers Production Cooperative Industries Societies Limited. Shri I. S. Goyal, in reply submitted that it is for the Government to determine whether a particular industry falls within the category to which exemption can be given under S.13 of the Act and the object of promotion of Khadi envisaged by the directive principle in Art. 43 of the Constitution permits such a classification placing the Khadi Ashram, Panipat and its units in the State of Haryana in a distinct class. He also submitted that it is significant that no challenge to this classification has been made by any other Khadi unit.;