JUDGMENT

AMARENDRA NATH SEN, J.— The question of constitutional validity of the Mysore Sales Tax (Amendment) Act, 1969 (Mysore Act of 1969), (hereinafter referred to as the Act) falls for determination in these two appeals preferred by the appellants with certificate granted by the High Court under Art. 133 (1) of the Constitution.

2. The question arises under the following circumstances :-

The appellants are Excise Contractors who had secured excise privilege of retail sale of Toddy, Arrack or Special Liquor. The State Government has the monopoly of the first sale of Arrack which is country liquor other than Toddy. The manufacture of Arrack by distillation is done in the State under State control and the entire quantity manufactured by distillation in the State is sold to the State Government which in its turn supplies Arrack to bonded depots in Taluks. Under the Mysore Excise Act Arrack is liable to excise duty at the rates prescribed by the Government. The State does not collect excise duty from the distillers. From the distillary Arrack is transferred to Bonded Depots and excise duty together with cesses thereon is collected from the contractors who are given the privilege or rig