Maharaja Shree Umaid Mills Ltd vs Union Of India on 27 November, 1962
It only remains now to, refer to another decision of this
Court in Maharaja Shree Umaid Mill Limited v. Union of India
(2). In that case there was an agreement between the Ruler
of the former State of Jodhpur and the Maharaja Shree Umaid
Mills Limited by which certain exemptions from income-tax
and excise duty were granted to the Mills. Two questions
arose for decision there. The first was whether excise
could be levied on the cloth manufactured and the second was
whether income-tax could be levied on the income of the
Mills, in view of the agreement between the Mills and the
former Ruler of Jodhpur. The first question that was raised
in that case was whether the agreement was a law; and this
Court held that
(1) [1959] S.C.R. 729.