U. L. BHAT, C.J. - Petitioner is a company incorporated under the Indian Companies Act, 1956. Petitioner owns a sugar factory in Mandsaur district. Sugarcane is purchased from cultivators. Petitioner is a registered dealer under the M.P. General Sales Tax Act, 1958 (hereinafter referred to as "the Act" for short). Purchase of sugarcane is taxable under section 7 of the Act on the basis of "purchase price". "Purchase price" is defined in section 2(kk) of the Act. Petitioner's contention is that clauses (ii) and (iv) of section 2(kk) of the Act are ultra vires. On behalf of the respondents, return has been filed.

2. The only contention urged by the learned counsel for the petitioner is based on the ground of lack of legislative competence in the State Legislature to incorporate the subject-matter of the impugned clauses in the definition of "purchase price" and treating the same as part of "purchase price".

Section 4 of the Act deals with incidence of taxation. Every dealer whose turnover during the year exceeds the limits specified in sub-section (5) of section 4 shall be liable to pay tax under the Act on his taxable turnover in respect of sales or supplies of goods effect