1. In these eight petitions under Art.226 of the Constitution, the validity of the levy of tax on purchase of sugarcane, has been challenged by two Sugar Factories.

2. In W.Ps. Nos. 2208 of 1967 and 32 to 34 of 1968, the petitioner is Indian Sugar and Refineries Ltd. having its Factory at Hospet in Bellary District, and the impugned tax and penalty relate to the period 1-4-1962 to 30-6-1967. In W.Ps. Nos. 2225 of 1967 and 29 to 31 of 1968, the petitioner is Salarjung Sugar Mills Ltd. having its Factory at Munirabad in Raichur District, and the impugned tax and penalty relate to the period 1-7-1963 to 30-6-1967.

3. We may briefly refer to the historical background of the levy of purchase tax on sugarcane. Practically all the States in which sugarcane was grown for the purpose of manufacturing sugar, used to levy a cess on sugarcane brought into the premises of Sugar Factories. The proceeds of such levy were utilised for the purpose of development and improvement of cultivation of sugar - cane and for development of the sugarcane growing area.

4. In the former State of Madras sugar - cane cess was levied under S.14 of the Madras Sugar Factories Control Act, 1949 (hereinafter referre