- (1.) Leave granted.
(2.) The State of Jammu and Kashmir seeks to encourage and promote the industrialisation of the State like every other State in the country. Edible oil industry is one such. Because of certain inherent problems, the cost of production of edible oil in Jammu and Kashmir is said to be higher than the cost of production of similar edible oil in the adjoining States with the result that the manufacturers of edible oil in the adjoining States are able to sell their products in Jammu and Kashmir at a price lower than the price at which the local manufacturers are able to sell. This is said to have created a situation where the local industries faced the prospect of closure; at any rate, they were not able to compete with the out-State manufacturers. They approached their government, which is seeking to protect their interest by inter alia exempting them totally from the levy of sales tax on the sale of their products. That has given rise to the writ petition from which the present appeal arises. On the Jammu and Kashmir High court dismissing the writ petition, they have approached this court.
(3.) The Jammu and Kashmir General Sales Tax Act contains four Schedules. Each of the Schedules carries a particular rate of sales tax. Edible oils were previously included in Schedule D which prescribes the rate of tax at four per cent. On 20/12/1993, edible oils were shifted from Schedule D to Schedule C, which prescribes the rate of tax at eight per cent. (It is stated that SRO 213 of 1993 issued on 3/12/1993 shifting edible oils from Schedule D to Schedule C was rescinded within about a week thereafter but was reissued as SRO 124 of 1994 on 27/5/1994. );