RAMA SUGAR INDUSTRIES LTD. vs STATE OF ANDHRA PRADESH & ORS.

The Supreme Court held that under Section 21(3)(b) of the Andhra Pradesh Sugarcane (Regulation of Supply and Purchase) Act, 1951, the government has the discretion to grant exemptions from purchase tax. The Court found that the government's policy to limit exemptions to cooperative sugar factories was not a fetter on its discretion, as it considered the financial position and relevant factors of the sugar industry. The appeal was dismissed, affirming that the government could differentiate between types of factories based on their circumstances.