R.B.Misra, J. - (1.) The present group of appeals directed against the judgment of the High Court of Judicature at Allahabad dated July 28, 1978 raises a common question of law. These appeals arise out of petitions under Article 226 of the Constitution challenging the two Notifications dated January 25, 1975 issued under Section 14 of the U.P. Sugarcane (Purchase Tax) Act, 1961 (hereinafter referred to as the Act for short). The petitioners also sought a Mandamus directing the State Government to grant remission in purchase tax of 0.51 paise per quintal to all the Sugar factories situated in the State of U.P. As the pattern of facts is similar in all the cases, we would refer to the facts of Civil Appeal arising out of Writ Petition No. 409 of 1975 filed by M/s. Shree Sitaram Sugar Company Limited Bailtapur, district Deoria, against the State of Uttar Pradesh and others to bring out the question for consideration in these appeals.
(2.) The petitioner is a Public Limited Company and owns a sugar factory in Deoria known as Shree Sitaram Sugar Company Limited, Bailtapur, U.P. The Sugar Factory is engaged in the manufacture of sugar by Vacuum Pan Process. It purchases sugarcane from the reserved area allocated to it under the provisions of U.P. Sugarcane (Regulation of Supply and Purchase) Act. 1953 and Sugarcane Control Order, 1966.
(3.) By a Notification dated September 29, 1973 issued under Cl. 3 of the Sugarcane (Control) Order, 1966, Central Government fixed the price of sugarcane for the factories situated in Uttar Pradesh. The minimum price fixed by this Notification for the area in which the petitioner's factory was situated was Rs. 8.38 per quintal. The cane growers felt agitated (aggrieved ) as according to them, the price fixed was much too low. They, therefore, made representation to the U. P. Government and as a result thereof the U.P. Government intervened in the matter and fixed sugarcane price at Rs. 12.25 per quintal for the Sugar Mills situated in the East Zone. According to the petitioner, however, the price fixed was exorbitant and as the petitioner and other sugar factories were likely to suffer enormous losses, the Sugar Factories approached the State of U.P. and brought to its notice that they were not in a position to pay the higher sugarcane price. The stand of the appellant petitioner and others is that the Chief Minister was satisfied with the demand made by the sugar factories and he assured them that the State Government would grant remission in purchase tax to all the factories situated in the East Zone. By a Notification issued under S. 14(l) of the Act, the State Government granted remission to the extent of 0.51 paise per quintal to 18 Sugar Factories mentioned in the area. By another Notification of the same date, two more factories were granted the remission. As the remission was not granted to the appellant-petitioner and to some other factories similarly situated, they filed petitions under Art. 226 of the Constitution challenging the aforesaid Notifications issued by the State Government.;