Case Note & Summary
The petitioner, Agricultural Produce Market Committee (APMC), Islampur, filed a writ petition challenging the action of respondent village panchayats (Mangale, Shirala, and Charan) in collecting cess or market fee from persons marketing agricultural produce within their respective villages. The villages were covered by a notification issued under Section 4 of the Maharashtra Agricultural Produce Marketing (Regulation) Act, 1963 (APMC Act), which declared them as part of the regulated market area. The village panchayats justified their levy under Section 126 of the Maharashtra Village Panchayats Act, arguing that since the APMC was not actually carrying out any marketing activities in those villages, they were entitled to collect the cess. The court examined the provisions of Section 4 and Section 31 of the APMC Act. Section 4 empowers the government to issue a notification declaring regulation of marketing of specified agricultural produce in a specified market area, and after such notification, no other authority can levy any fee or cess in that area. Section 31 vests the APMC with the exclusive power to collect market fees. The court held that once a notification under Section 4 is issued, the APMC has the exclusive right to regulate marketing and collect fees, and village panchayats cannot levy any cess under Section 126 of the Village Panchayats Act. The court allowed the petition, quashing the action of the village panchayats in collecting cess or market fee.
Headnote
A) Agricultural Marketing - Exclusive Jurisdiction - Notification under Section 4 of APMC Act - Once a notification is issued under Section 4 of the Maharashtra Agricultural Produce Marketing (Regulation) Act, 1963 declaring a market area, no other authority including village panchayats can levy any cess or fee in respect of marketing of agricultural produce within that area. The APMC has the exclusive right to regulate marketing and collect fees. (Paras 4-5) B) Village Panchayats - Levy of Cess - Section 126 of Village Panchayats Act - Section 126 of the Maharashtra Village Panchayats Act cannot be invoked to levy cess or market fee in areas already covered by a notification under Section 4 of the APMC Act. The provisions of the APMC Act override the general powers of village panchayats. (Paras 5-6) C) Interpretation of Statutes - Special Act Overrides General Act - The Maharashtra Agricultural Produce Marketing (Regulation) Act, 1963 being a special enactment dealing with regulation of marketing of agricultural produce, its provisions prevail over the general provisions of the Maharashtra Village Panchayats Act. (Para 6)
Issue of Consideration
Whether village panchayats can levy and collect cess or market fee under Section 126 of the Village Panchayats Act in areas already notified under Section 4 of the Maharashtra Agricultural Produce Marketing (Regulation) Act, 1963.
Final Decision
The court allowed the writ petition, quashing the action of respondent village panchayats in collecting cess or market fee from persons marketing agricultural produce within the villages covered by the notification under Section 4 of the APMC Act.
Law Points
- Exclusive jurisdiction of APMC over notified market areas
- prohibition on dual levy by village panchayats
- interpretation of Section 4 and Section 31 of APMC Act vis-à-vis Section 126 of Village Panchayats Act
