JUDGMENT

V.N.KHARE, J.

(1) THE appellant herein is a company incorporated under the Indian Companies Act and has a sugar factory in the district of Bijapur in the State of Karnataka, where the appellant is carrying on business of manufacture of sugar. For the crushing year 1985-86, the appellant herein was required under the statutory order to sell 55% of levy sugar and rest 45% was meant for free sale. Under section 3, (3C) of the Essential Commodities Act (hereinafter referred to as the Act), the central government is empowered to fix the price of levy sugar keeping in regard to the minimum price, if any, fixed for sugarcane by the central government, the manufacturing cost of sugar, the duty or tax, if any, paid or payable thereon; and the securing of a reasonable return on the capital employed in the business of manufacturing sugar. It is alleged that the central government, for the crushing year 1985-86, fixed the price of levy sugar at Rs. 362.76, which was subsequently increased to Rs. 365.42. The appellant was not satisfied with the fixation of the levy price and, therefore, challenged the said fixation of price by the central government by means of a p