JUDGMENT:

S.B. Sinha, J.

1. Leave granted.

2. What are the factors which are required to be taken into consideration by the Central Government for determining the price of levy sugar in exercise of its power under Section 3(3C) of the Essential Commodities Act, 1955 (the Act) is the question involved herein.

3. Before us, there are various owners of sugar mills who purchased sugarcane from the farmers.

4. Section 3(2)(f) of the Act empowers the Central Government to fix compulsory quota of sugar produced by a sugar producer in the manner prescribed by the Central Government including the price thereof at which the same is to be sold. It is known as "levy sugar". The rest of the sugar, however, can be sold by the producers in free market. It is known as "free sugar".

5. The factors which are relevant to be taken into consideration by Central Government is contained in Section 3(3C) of the Act which includes:

(a) The minimum price, if any fixed for Sugarcane by the Central Government.

(b) The manufacturing cost of sugar.

(c) The duty or tax, if any, paid or payable thereon; and

(d) Securing a reasonable return on the Capital employed in the business of manufacturing, and