G.S. Singhvi, J. - The petitioners, who are engaged in the manufacture of milk products in their factories/units located in the State of Punjab, have challenged the notices issued by the respondents requiring them to pay purchase tax on milk under the Punjab General Sales Tax Act, 1948 (hereinafter referred to as 1948 Act) for the period commencing from 1.4.1996.

2. The facts necessary for deciding the issues, which arise in these petitions, are that petitioner M/s. Nestle India Limited is procuring milk, which is used as raw-material for manufacturing of various types of food products, from the "Milk Shed Area" covering 6060 square kilometers consisting of about 600 villages in and around Moga. It is carrying out large scale extension work among milk producers to help them to develop better cattle and milk yields by educating them in better farm practices and educate them to modernise their system so that they can supply large quantity of good quality milk and thereby earn higher profits. During 1995-96 the petitioner incurred an expenditure of Rs. 2.5 crores for the purpose of carrying out the activities to support the farmers. This amount was raised to Rs. 6 crores durin