BILAL NAZKI, J. ( 1 ) THESE three writ petitions raise same questions, of fact and law. They are taken up for disposal together. The facts are narrated as stated in Writ petition No. 17422/99. ( 2 ) IT is stated that certain assorted pieces of land in the districts of Khammam, east Godavari, West Godavari, Krishna, guntur, Prakasam, Nellore and Warangal have rich black cotton soils and Virginia tobacco is being grown in all these districts for more than 70 years. The practice of growing Virginia tobacco was introduced by Britishers. It is further submitted that, earlier 85% of the Virginia, tobacco grown in India was produced by Andhra Pradesh but with the development and encouragement for Virginia tobacco cultivation Karnataka is now one of the important tobacco producing States. Inspite of that Andhra pradesh is producing 70% of total production of tobacco of India. In 1975 Government of india felt a need of regulating the trade, growth and cultivation of Virginia tobacco and eventually Tobacco Board Act, 1975 (hereinafter referred as the Act ) was enacted. It came into force on 1st january, 1976. The provisions contained in sections 10 and 11 of the Act were made applicable to the State of Andhra Pradesh with effect from 28th August, 1976. The provisions of Sections 12, 14 and 15 were also made applicable throughout the country with effect from 28th August, 1976. Notifications for this purpose were issued. Tobacco Board was constituted under section 4 of the Act. ( 3 ) THE grievance of the petitioners is two fold, one by which the classification of growers was made by dividing the black cotton soils in Andhra Pradesh into three regions. It is submitted that this classification has been made without any basis or data. Therefore the petitioners challenge the categorisation of growers on the basis of regions. The second grievance is against the notification dated 14th june, 1999 by which 5% service charge has been imposed on the unregistered growers. In order to appreciate the rival arguments it is necessary to have a glance through the act. ( 4 ) THE Act was promulgated by parliament to provide for the development and regulation of the tobacco industry. Under section 4 Tobacco Board was constituted and Section 8 lays down the functions of the board. Section 10 prohibits growing of virginia tobacco without getting registered with the Tobacco Board. ( 4 ) THE Act was promulgated by parliament to provide for the development and regulation of the tobacco industry. Under section 4 Tobacco Board was constituted and Section 8 lays down the functions of the board. Section 10 prohibits growing of virginia tobacco without getting registered with the Tobacco Board. Section 13 prescribes the registered grower from selling or causing to be sold Virginia tobacco grown by him anywhere other than at an auction platform established or registered with the tobacco Board. Breach of any of the provisions of the Act is punishable under section 25 of the Act. The provisions make it clear that Tobacco can be grown and sold only in accordance with the provisions of the Act and this can be grown and sold by growers who are registered with the tobacco Board. Even after registration the grower cannot cultivate tobacco over an area which is in excess of authorised area. The tobacco grower who has grown tobacco without getting himself registered or who has grown tobacco over an area which is in excess of authorised area would be liable for punishment under Section 25. ( 5 ) THIS is not the case of the petitioners that they were authorised to grow the tobacco for which 5% service charges have been imposed. They submit that, in terms of Section 14-A there is an embargo not to levy fee for the services rendered by the Board exceeding 2% of the value of the tobacco sold, therefore the respondents were not competent to levy service charge at the rate of 5%. It is penal and it is in the nature of the tax, which could have not been levied. ( 6 ) ADMITTEDLY it is the unauthorised tobacco, which is subject to 5% service charge under the notification of 14th June, 1999. But the contention of the petitioners is that they became unauthorised growers with respect to certain quantities of tobacco because of the illegal classification made of the soils and even otherwise the respondents had no power or authority to levy 5% service charge as that would be contrary to Section 14-A of the Act. The classification of the soils has been challenged on the ground that this was arrived at without any basis or any data. The classification of the soils has been challenged on the ground that this was arrived at without any basis or any data. ( 7 ) THE respondents in their counter have denied that the classification into three regions was made without any scientific basis. It is stated that nowhere in the world except in India and South Africa tobacco is grown in black soils. The tobacco produced in black soils is unripe having imbalance leaf chemistry and has poor manufacturing qualities for cigarette making. Light soil tobacco will have desirable characters for cigarette making. Because of the poor quality, tobacco from black soils particularly in NBS/cbs regions the growth of tobacco is either declining or static in india. In climate i. e. , rainfall, day and night temperatures and relative humidity play an important role on quality of tobacco. In southern black soils the crop is planted in October and atleast 2 to 3 rains are received during the crop growth. Therefore the leaf is somewhat ripe, open grained, good bodied and lemon to lemon orange in colour with pliability, humidity levels are also high in SBS areas since they are located nearer to the sea coast and in respect of NBS/cbs region, crop is planted in November/december and generally rains are not received during crop growth period under normal conditions. Because of moisture stress in the soil and higher day temperatures and its distance from the sea coast the leaf produced is unripe, thick bodied, lemon in colour without pliability. The rainfall data relating to Ongole (SBS region) and Guntur, Tadikonda, kanchikacherla representing CBS regions and Rajahmundry and Bhadrachalam representing NBS region has been furnished along with the counter. The cigarette manufacturers, according to the respondents, are of the opinion that tobacco grown in southern black soils is preferred to tobacco grown in CBS/nbs regions because of its advantages in both physical and chemical properties in cigarette making. The differences in three categories have also been given in the counter as below: