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PETITIONER: THE STATE OF MADHYA PRADESH
Vs.
RESPONDENT: THE GWALIOR SUGAR CO., LTD.,AND OTHERS(AND CONNECTED APPEAL)
DATE OF JUDGMENT: 30/11/1960
BENCH:
ACT: Cess-Levy on sugar cane ordered by erstwhile Ruler-Consti- tutional validity-Constitution of India, Arts. 14, 265, 373.
HEADNOTE: In order to put the sugar industry on a stable footing, for which it was necessary to develop the cane area, the Ruler of the erstwhile Gwalior State by an order dated 27-7-1946 sanctioned the levy of cess of one anna per maund on all sugar cane purchased by the respondent company. When the Government of Madhya Bharat, which was the successor state of the former Gwalior State, made a demand for payment of the cess, the respondent filed a petition before the High Court of Madhya ,Bharat challenging the legality of the levy on the grounds (1) that the order dated 27-7-1946 was only an executive order and not a law under Art. 265 of the Constitution of India and that, therefore, there was no authority for the imposition of the cess after January 26, 1950, and (2) that the levy was discriminatory and violated Art. 14 inasmuch as while the respondent was made liable to pay the cess the other sugar factories in the State were exempt. It was found that at the time when cess was first levied there was no sugar factory in existence in the Gwalior State other than that of the respo...