Case Note & Summary
The case pertains to exemption from payment of Market fee and Rural Development fee sought by the respondent company under the Industrial Policy, 2003 of the Punjab Government. The respondent company, incorporated on 26.12.2006, set up a spinning unit at Bathinda for manufacturing cotton yarn. It applied to the appellant State for exemption from Market fee and Rural Development fee, claiming to be similarly situated as M/s Partap Furane Pvt. Ltd., which had been granted exemption from Market fee. The respondent filed a writ petition before the Punjab & Haryana High Court, which was dismissed as not pressed after the State's counsel stated that Market fee exemption would also cover Rural Development fee. Subsequently, the appellant filed an application seeking modification, arguing that the two fees are separate levies under different Acts. The High Court dismissed the application, relying on letters from the Agriculture Department. The Supreme Court allowed the appeal, holding that Market fee under the Punjab Agricultural Produce Markets Act, 1961 and Rural Development fee under the Punjab Rural Development Act, 1987 are distinct levies with different objects. The Industrial Policy, 2003 does not specifically exempt Rural Development fee, and thus exemption from Market fee does not automatically extend to Rural Development fee. The Court set aside the High Court's orders and dismissed the respondent's writ petition.
Headnote
A) Interpretation of Statutes - Exemption from Fees - Market Fee and Rural Development Fee - Punjab Agricultural Produce Markets Act, 1961, Section 23; Punjab Rural Development Act, 1987, Sections 5 and 6 - The issue was whether exemption from Market fee under the Industrial Policy, 2003 automatically covers Rural Development fee. The Supreme Court held that the two fees are levied under different Acts with distinct objects and purposes, and the Policy does not specifically exempt Rural Development fee. Therefore, exemption from Market fee does not include exemption from Rural Development fee (Paras 7-15).
Issue of Consideration
Whether exemption from payment of Market fee granted under Clause 11.4.2(i) of the Industrial Policy, 2003 of the Punjab Government includes exemption from Rural Development fee as well.
Final Decision
Appeal allowed. Impugned orders of the High Court dated 27.01.2010 and 24.09.2010 set aside. Writ Petition No. 14847 of 2009 filed by the respondent dismissed.
Law Points
- Exemption from Market fee under Punjab Agricultural Produce Markets Act
- 1961 does not automatically extend to Rural Development fee under Punjab Rural Development Act
- 1987
- as they are separate levies under different statutes with distinct objects.
Case Details
2024 LawText (SC) (7) 159
Civil Appeal No. 1234 of 2011 (arising out of SLP (C) No. 1234 of 2011)
State of Punjab and Others
M/s. Jindal Cotex Limited
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Nature of Litigation
Civil appeal against High Court orders dismissing modification application regarding exemption from Market fee and Rural Development fee.
Remedy Sought
Appellant State sought to set aside High Court orders and dismiss respondent's writ petition seeking exemption from Rural Development fee.
Filing Reason
Appellant aggrieved by High Court's order that Market fee exemption automatically covers Rural Development fee.
Previous Decisions
High Court dismissed writ petition as not pressed after State's counsel stated Market fee exemption covers Rural Development fee; later dismissed modification application.
Issues
Whether exemption from Market fee under Industrial Policy, 2003 includes exemption from Rural Development fee.
Submissions/Arguments
Appellant argued that Market fee and Rural Development fee are separate levies under different Acts with distinct objects; Policy does not exempt Rural Development fee.
Respondent argued that 'Market fees' in Policy includes Rural Development fee as both are levied in notified market area; relied on letters from Agriculture Department.
Ratio Decidendi
Exemption from Market fee under the Industrial Policy, 2003 does not automatically extend to Rural Development fee, as they are separate levies under different statutes with distinct objects and purposes.
Judgment Excerpts
The core issue of the matter boils down to whether the exemption from payment of Market fee granted under Clause (i) of 11.4.2 of 2003 Policy of the Punjab Government can be said to include exemption from Rural Development fee as well or not.
Market Fee is levied under Section 23 of the 1961 Act... Rural Development Fund is levied under Section 5 of the 1987 Act...
Learned Counsel appearing for the Appellant State argued that the Market fees under the 1961 Act and Rural Development fees under the 1987 Act are two different 'fees' levied under two different Acts having different objects and purpose.
Procedural History
Respondent filed Civil W.P. No. 14847 of 2009 before Punjab & Haryana High Court seeking exemption. High Court dismissed it as not pressed on 27.01.2010 after State's counsel stated Market fee exemption covers Rural Development fee. Appellant filed C.M. No. 3144 of 2010 seeking modification, which was dismissed on 24.09.2010. Appellant then appealed to Supreme Court by special leave.
Acts & Sections
- Punjab Agricultural Produce Markets Act, 1961: Section 23
- Punjab Rural Development Act, 1987: Section 5, Section 6
