JUDGMENT

Brijesh Kumar, J.-Leave granted.

2. This appeal arises out of judgment and order dated 4.2.1999 passed by the Division Bench of Jammu & Kashmir High Court, dismissing the appeal and refusing the prayer of the appellants to the effect that they may not be required by the respondent to deposit the balance amount of sales tax for the period prior to March 31, 1997.

3. The brief facts are that the appellants sell their product namely, mustard/edible oil in the State of Jammu & Kashmir while the manufacturing takes place in the State of Punjab & Haryana. Section 4(1) of Jammu & Kashmir General Sales Tax Act, 1962 is the charging provision for the levy of Sales Tax in the State of Jammu and Kashmir. The State Government issued Notification under the aforesaid provision from time to time levying sales tax, initially @ 1% in the year 1982. The rate of tax was however increased to 4% applicable to all categories of manufacturers of edible oil viz. inside and outside the State of Jammu and Kashmir. Later on by means of Notification No. SRO-93/90-91 dated March 7, 1991 issued under Section 5 of the Jammu and Kashmir General Sales Tax Act, exemption from payment of sales tax was granted to all the units manufacturing and carrying on business in edible oil in the State of Jammu and Kashmir. The result was that manufacturers of the State of Jammu and Kashmir were not required to pay any sales tax whereas outside manufacturers had been paying sales tax at the rate of 4% as enhanced by means of a Notification issued in 1989.

4. Later on the rate of sales tax was further enhanced to 8% by Notification SRO-124/1994 dated June 27, 1994. The appellants, namely, the manufacturers from outside the State felt discriminated against and raised a grievance that total exemption granted to the manufacturers within the State was hit by provisions of Article 301 and 304 of the Constitution as it created tax barriers affecting the free flow of trade and commerce within the territory of India. However, on perusal of the order passed by the learned Division Bench, it appears that while the writ petition filed by the appellants was still pending in the High Court, the said grievance raised by the manufacturers from outside the State, came to be considered by this Court in the case of Shree Mahavir Oil Mills & Anr. v. State of J & K and others1. It was held that "by exempting unconditionally the edible oil produced within the State of Jammu and Kashmir altogether from sales tax, even if it is for a period of ten years, while subjecting the edible oil in other States to sales tax at 8%, the State of Jammu & Kashmir has brought about discrimination by taxation prohibited by Article 304(a) of the Constitution". The operative part of the order reads as follows :

"We declare that the exemption granted by Notification No. SRO 93 of 1991 to local manufactures/producers of edible oil is violative of the provisions contained in Articles 301 and 304(a). At the same time, we direct that: (a) the appellants shall not be entitled to claim any amounts by way of refund or otherwise by virtue of or, as a consequence of, the declaration contained herein and (b) that the declaration of invalidity of the impugned notification shall take effect on and from 1.4.1997. Till that date, i.e. upto and inclusive of 31.3.1997, the impugned notification shall continue to be effective and operative"

The provisions of Article 142 of the Constitution were also invoked by this Court while passing the above order so as to mould the relief to suit the exigencies of the situation.

5. Shri. R.F. Nariman, learned senior counsel, appearing for the appellants, submits that while moulding the relief with the aid of Article 142, the interest of only two parties was taken into consideration, namely, the manufacturers in the State of Jammu and Kashmir and the State but not that of the outside manufacturers, inasmuch as it has been directed that they shall not be entitled to claim any amount by way of