G. GRIDHAR PRABHU AND ORS. versus AGRICULTURAL PRODUCE MARKET COMMITTEE

Citation: [2001] 2 S.C.R. 329 · Decided: 02-03-2001 · Supreme Court of India · Bench: V.N. KHARE · Disposal: Dismissed

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

Judgment (excerpt)

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G. GRIDHAR PRABHU AND ORS. 
A 
v. 
AGRICULTURAL PRODUCE MARKET COMMITTEE 
MARCH 2, 2001 
[V.N.KHAREANDS.N.VARIAVA,JJ.] 
B 
Karnataka Agricultural Produce Marketing (Regulation) Act, 1966 : 
Section 65(2-A)(iii). 
Agricultural Produce-Market fee-Levy of-Trader pun:hased raw 
cashew nuts and after processing the same extracted cashew kernel-Both were 
notified agricultural produces and market fee was payable on each-But 
trader paid market fee on cashew nuts only-Market Committee directed truder 
to collect market fee on cashew kernel also from his buyers-Validity of-Held, 
only a producer who produces the main agricultural produce is exempted.from 
paying the market fee-A person who processes or manufactures a different 
notified agricultural produce from the main agricultural produce is a trader 
and not a producei~Hence, such a trader liable to pay market fee. 
Wonis and Phrases : 
c 
D 
"Producer"-Meaning of-In the context of S. 2(34) of the Karna/aka 
E 
Agricultural Produce Marketing (Regulation) Act, 1966. 
"Trader"-Meaning of-Jn the context of S. 2(48) of the Karnataka 
Agricultural Produce Marketing (Regulation) Act, 1966. 
The Appellants purchased raw cashew nuts and after subjecting the 
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same to the process of manufacture extracted cashed kernel. Both cashew 
nut and cashew kernel were notified agricultural produces under the Scbed· 
ule to the Karnataka Agricultural Produce Marketing (Regulation) Act, 
1966. The appellants bad been paying market fee on the purchase of 
cashew nuts as per the provisions of Section 65(2-A) of the Act. 
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The Market Committee issued notices to the appellants directing 
them to collect market fee from their buyers and pay the same to the 
Committee in respect of the transactions of sales of cashew kernel. These 
notices were issued under the provisions of Section 65(2-A) ·of the Act. The 
High Court dismissed the writ petition for a declaration that the appellants 
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330 
SUPREME COURT REPORTS 
[2001] 2 S.C.R. 
A 
were "producers" of cashew kernel and, therefore, were not liable to 
collect the market fee from their purchasers and pay the same to the 
.j. 
Committee. Hence these appeals. 
Dismissing the appeals, the Court 
B 
HELD : 1. The appellants are traders when they purchase cashew 
nut, which is a notified agricultural produce. In such purchase transaction 
the appellants are also importers. As such traders and importers, the 
appellants have obtained a licence and are paying market fee. [335-E-F] 
c 
2.1. As can he seen from the Preamble, the Karnataka Agricultural 
Produce Marketing (Regulation) Act, 1966 is to provide for better regula-
tion of marketing of agricultural produce. In the Act certain exemptions 
have been given to the producer which exemptions have not been given 
either to the importer or an exporter or a trader. These exemptions, 
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therefore, have been given to the producer because the producer is the 
person who produces the main agricultural produce. The main agricul-
tural produce, which may he a notified agricultural produce, could then be 
converted into various other notified agricultural produce/s hy subjecting 
the same to a process or manufacture. The person who so processes or 
manufactures a different notified agricultural produce would not be a 
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producer. An importer imports or causes goods to be imported into the 
market area for the purpose of selling, processing, manufacturing or for 
any other purpose, except for one's own domestic consumption. Thus, it is 
clear that a persoD who imports wonld not he a producer. The import 
would he for the purpose of selling or processing or manufacturing or for 
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any other purpose except for one's own domestic consumption. Similarly, 
the term "exporter" makes it clear that an exporter is not a producer. A 
trader also is a person who buys notified agricultural produce for the 
purpose of selling or processing or manufacturing or for any other pur- -
pose except for the purpose of domestic consumption. The definition of the 
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term ''trader" is not a restrictive definition. It is not restricted to a person 
who only buys. If a person buys for domestic or personal consumption, 
then he would not be a trader. It is only when a person buys for the 
purpose of selling or processing or manufacturing that he would become a 
trader. Thus a person may buy, process or manufacture and then sell. 
,.., 
When he processes or manufactures notified agricultural produce, which 
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