STATE OF KARNATAKA Vs. UNION OF INDIA UOI

JUDGEMENT

(1.) This petition under Articles 226 and 227 of the Constitution, brought on behalf of the State of Karnataka, is directed against the orders made under the Central Excises and Salt Act, 1944, hereinafter referred to as the Act.

(2.) The facts leading to to the petition are these : The. Mysore Government Soap Factory at Bangalore is manufacturing all varieties of sanda wood soap. The entire soap manufactured at the Factory is canalised for sale through a sole selling agent called "Mysore Sales International", with the assistance of five zonal agents who are required to promote the sales of soap in their respective zones. The sales of soap to these agencies are governed by written agreements. In the agreements as between the Government and the sole selling agent it is stated : Clause 5 (a)

(3.) The sole question involved in this petition is, What exactly the trade discount allowable in terms of the Explanation to Section 4, in determining the wholesale cash price of the soap manufactured by the petitioner.