S.C. Manchanda, J. - (1.) This is a writ petition under Article 226 of the Constitution of India directed against an assessment order dated, the 2nd of March, 1962, purporting to have been made under, Rule 23 of the U.P. Sales Tax Rules, hereinafter referred to as the Rules, and against an order dated the 18th November, 1961, requiring the petitioner to deposit, the balance of the Exemption Fee of Rs. 8,000/-, and in addition Rs. 3,112.36 nP. which was collected by the petitioner, M/s. Luxa Upbhogta Co-operative Society Ltd., Surya Kunda, Varanasi, hereinafter referred to as the Society from its members as exemption fee.
(2.) The facts leading upto this petition are these. The petitioner is a registered Society. It was formed in 1948 for the purposes of distribution of food-grains and cloth to consumers during the period these commodities were under rationing and control. The Society commenced business on the 30th August, 1948 and closed down in June 1951, after rationing was lifted. When rationing was re-introduced in respect of food-grains, the Society revived its activities in November, 1956, for the distribution of food-grains according to the Government Regulations and to work the Government Scheme of distribution popularly known as the Fair Price Shop Scheme", hereinafter, referred to as the "Scheme." Under the Scheme, the Society used to purchase food-grains from Government at the price fixed by the Government from time to time and the Society in its turn supplied the food grains to the card-holders belonging to a certain income group on prices fixed by the Government. The work of distribution was carried on by the various shops opened by the Society in various parts of the City of Varanasi. The Society was not free to purchase food-grains in the open market nor was it free to supply food grains supplied by Government to anyone else except to card-holders who were entitled to draw such rationed quantity of food-grains and at the price fixed by Government.
(3.) The Sale of food-grains was exempted by Government front payment of sales-tax under Notification dated the 31st March, 1956, issued under Section 4 of the U.P. Sales Tax Act, hereinafter referred to as the Act. The exemption fee was, however, subject to the payment of an exemption fee of Rs. 18/- to Rs. 8,000/-depending on the turnover of the particular dealer. On the 13th of April, 1957, the Society applied for the grant of an exemption certificate and a sum of Rs. 18/- being the minimum exemption fee was deposited.;