Case Note & Summary
The dispute arose between a registered partnership firm engaged in the sale and export of rice and the Krishi Utpadan Mandi Samiti, Ghaziabad regarding the levy of market fee under the U.P. Krishi Utpadan Mandi Adhiniyam, 1964. The respondent sought to purchase rice for export and was asked to pay a market fee based on a demand notice issued by the appellant. The respondent contended that the rice was purchased from outside U.P. and exported directly without any transaction occurring within the market area. The appellant maintained that since the business establishment was in Ghaziabad, the transaction was valid for fee collection. The High Court ruled in favor of the respondent, stating that no sale occurred within the market area, leading to the appeal. The Supreme Court analyzed the provisions of the Act, particularly Section 17(iii)(b), which stipulates that market fee is applicable only when agricultural produce is sold within the market area. The court noted that the rice was never physically present in the market area and that the sale was completed at the port, thus no market fee could be levied. The appeal was dismissed, affirming the High Court's decision.
Headnote
A) Agricultural Law - Market Fee - Levy of Market Fee - U.P. Krishi Utpadan Mandi Adhiniyam, 1964, Section 17(iii)(b) - The court held that market fee can only be levied if the agricultural produce is physically present within the market area and a transaction of sale occurs therein. Since the rice was never brought into the market area and the sale occurred only at the port, the levy of market fee was not justified (Paras 1-16).
Issue of Consideration
Whether the appellant was entitled to levy market fee under Section 17(iii)(b) of the U.P. Krishi Utpadan Mandi Adhiniyam, 1964 when the agricultural produce was neither brought nor taken out of the market place.
Final Decision
The Supreme Court dismissed the appeal, affirming the High Court's ruling that no market fee could be levied as the agricultural produce was never present in the market area.
Law Points
- Market fee
- agricultural produce
- jurisdiction
- transaction of sale
- physical presence
- levy of fee
