Grievance of the respondent companypany was that the Assessing Authority was number justified in levying purchase tax on the amount paid by the factory to the sugarcane growers over and above the statutory minimum price fixed by the Central Government.
The price paid by sugar factories to sugarcane growers also companyprises harvesting subsidy, transportation subsidy, plantation subsidy and the advance payment towards these subsidies.
In addition to statutory price so fixed, the Government of Karnataka also fixes the price payable to sugarcane growers by the sugar factories as State Advised Price SAP for short .
The price payable for purchase of sugarcane by a sugar factory is fixed by the Government of India in exercise of its powers under clause 3 of the Sugarcane Control Order, 1966 in short Control Order .
The orders of assessment passed by the Assessing Officer were questioned by the respondent company by filing a Writ Petition before the High Court.
The respondent company approached this Court questioning companyrectness or otherwise of the order passed by the High Court by filing a Special Leave Petition.
The price so fixed is called the Statutory Minimum Price.
