AGRICULTURAL PRODUCE MARKET COMMITTEE versus BIOTOR INDUSTRIES LTD. & ANR.

Citation: [2013] 16 S.C.R. 939 · Decided: 29-11-2013 · Supreme Court of India · Bench: G.S. SINGHVI · Disposal: Disposed off

Cited by 1 judgment(s) · see the full citation network in Lexace

Judgment (excerpt)

[2013] 16 S.C.R. 939 
AGRICULTURAL PRODUCE MARKET COMMITTEE 
v. 
BIOTOR INDUSTRIES LTD. & ANR. 
(Civil Appeal Nos.3130-3131 of 2008) 
NOVEMBER 29, 2013 
[G.S. SINGHVI AND V. GOPALA GOWDA, JJ.] 
A 
B 
Agricultural Produce. Market Fee -
Respondent-
company, situated in market area of appe/lant-APMC, 
undertaking manufacture of castor oil out of castor seed.s -
C 
Appel/ant-APMC sought to levy market fee on castor seeds . 
bought by respondent-company -
Respondent-company·~ 
contested the levy contending that castor seeds were brought, 
into the market area of APMC as provided u/r. 48(2) of the 
1965 Rules and no fees were leviable on agricultural produce D 
brought from outside the market area into the market area fOr . 
use therein by industrial concern situated in the market area 
- Levy of market fee on castor seeds -
Validity - Held: 
Respondent-company placed order for purchase of castor 
seeds from its suppliers from outside the market area qut no 
E 
payment was immediately made for the same - When the 
castor seeds reached the market area, it was weighed by 
respondent-company and payment thereof was agreed to be 
made to the tune of quantity received and till then the castor 
seeds continued to be in the ownership of the seller -
F 
Respondent-company became owner of the property only 
once the exact weight of the castor seeds was ascertained and 
purchase voucher was obtrined - Sale of castor seeds thus 
took place within the market area of appellant-APMC and 
accordingly appellant was authorized to charge fees from G 
respondent-Company for such purchase - r.48(1) was 
applicable to the fact situation and not r.48(2) - Appellant-
APMC rightly made assessment of market fee and levied the 
same as per s.28 of the Act - Respondent-Company liable 
939 
H 
940 
SUPREME COURT REPORTS 
[2013] 16 S.C.R. 
A 
to pay market fee which is cess on purchase of castor seeds, 
justifying the claim of APMC - Gujarat Agricultural Produce 
Markets Act, 1963 - ss.2(1)(i) and 28 - Gujarat Agricultural 
Produce Market Rules, 1965 - r.48 - Sale of Goods Act, 1930 
- ss. 19, 20 and 21. 
B 
Agricultural Produce Market Fee -
Respondent-
Company, situated in market area of appellant-APMC, 
undertaking manufacture of castor oil out of castor seeds -
Extraction of castor oil leading to production of de-oiled cake, 
a by-product containing less than 1% castor oil - De-oiled 
C cake then sold in the market - Levy of market fee on de-oiled 
cake ..;. Validity - Held: The by-product of de-oiled cake is 
different from the oil cake as it contains oil less than 1 % and 
it is not included in the Schedule to the Act for. the purpose 
of charging market fee - The item which is mentioned is oil 
D cake which is different and distinct from the de-oiled cake -
No market fee could thus be levied by appel/ant-APMC on 
de-oiled cake - Gujarat Agricultural Produce Markets Act, 
1963 - ss.2(1)(i) and 28. 
E 
The respondent-Company is an industrial concern 
undertaking manufacture of castor oil out of the castor 
seeds which are declared as agricultural produce in the 
Schedule to the Gujarat Agricultural Produce Markets Act, 
1963. The appellant-Agricultural Produce Market 
F Committee, Baroda ("APMC") sought to levy market fee 
on the castor seeds bought by respondent-Company. 
The respondent-Company contested the levy contending 
that castor seeds were brought into the market area of 
APMC as provided under sub-rule (2) of Rule 48 of the 
Gujarat Agricultural Produce Market Rules, 1965 and no 
G fees are leviable on agricultural produce brought' from 
outside the market area into the market area for use 
therein by the industrial concern situated in the market 
area. 
H 
The single Judge of the High Court upheld the plea 
AGRICULTURAL PRODUCE MARKET COMMITTEE v. 941 
BIOTOR INDUSTRIES LTD. 
of APMC for levy of market fee on the castor seeds A 
purchased by the respondent-Company, but in respect 
to levy of market fee on de-oiled cake, a by-product in 
course of manufacturing castor oil, accepted the 
contention of respondent-Company that de-oiled cake 
could not be treated as oil cake, and therefore, it was not B 
liable for levy of market fee since it was not mentioned in 
the Schedule to the Act. 
Aggrieved, respondent-Company as well as the 
APMC preferred cross appeals. The Division Bench of the C 
High Court allowed the appeal preferred by respondent-
Company and dismissed the appeal preferred by the 
APMC. 
In the instant appeals, the following 

Excerpt shown. Read the full judgment & AI analysis in Lexace.