HARYANA STATE AGRICULTURAL MARKETING BOARDS AND ORS. versus SH. GANESH RICE AND GENERAL MILLS AND ANR.

Citation: [1998] SUPP. 3 S.C.R. 394 · Decided: 04-12-1998 · Supreme Court of India · Bench: S. SAGHIR AHMAD · Disposal: Appeal(s) allowed

Judgment (excerpt)

A 
B 
HARYANA STATE AGRICULTURAL MARKETING 
BOARDS AND ORS. 
v. 
SH. GANESH RICE AND GENERAL MILLS AND ANR. 
DECEMBER 4, 1998 
[S. SAGHIR AHMAD AND M. SRINIVASAN, JJ.] 
Punjab Agricultural Produce Markets (General) Rules, 1962 : Sub-
rules (3) to (5) of Rule 30 and Rule 31-Levy of market fee-Dealer-
C Purchase of paddy-Market Committee-Memos issued for payment of market 
fee-Exemption claimed on the ground that market fee already paid at the 
place of purchase-Rejected on the ground that relevant rules were not 
complied with-On challenge High Court holding that the levy of market fee 
was without jurisdiction-On appeal, held, the conditions required under the 
D rules are to be fulfilled by a dealer for claiming exemption-Mere statement 
that market fee already paid cannot be accepted-Levy of market fee justified-
Exemption be granted to dealer on filing of declaration and cenificate in 
Form LL. 
The first respondent, a dealer, purchased paddy from areas outside the 
E jurisdiction of the Market Committee for processing. It submitted a return 
in Form 'M' under Rule 31 of the Punjab Agricultural Produce Markets 
(General) Rules, 1962 setting out the details of the purchase. Column 7 in 
the said form which provides for stating whether fee was leviable or not was 
left blank by the first respondent. The Market Committee issued Memos to 
the first respondent requiring it to pay the purchase fee within a week as 
F the necessary information and declaration was not given in time. The First 
respondent sent a reply claiming exemption from payment on the ground that 
market fee had already been paid at the place of purchase. In return the 
Market Committee sent notices rejecting the stand of the first respondent 
and reiterating that the relevant Rules were not complied with. The Market 
G Committee forwarded the papers to the Assistant Collector for recovery of 
the fee as arrears of land revenue and the latter issued notice to the first 
H 
respondent treating it as a "defaulter". The first respondent filed a writ 
petition before the High Court which was allowed holding that the levy of 
market fee was without jurisdiction. Hence the present appeal. 
Allowing the appeal, this Court 
394 
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H.S.A.MKT. BOS v. SH. GANESH RICE AND GEN. MILLS 
395 
HELD: I.I. Market Committee was justified in levying the market fee A 
on the first respondent and the judgment of the High Court is not sustainable. 
[399-D-E] 
1.2. Sub-rules (3) to (5) of Rule 30 of the Punjab Agricultural Produce 
Markets (General) Rules, 1962 requires three conditions to be satisfied by 
a dealer for claiming exemption, viz., (i) the dealer should have paid the B 
market fee already in a market area; (ii) the dealer shall make a declaration 
and give certificate to the Committee in Form LL where the fee has already 
been paid; and (iii) such form shall be filed within twenty days of the bringing 
of the agricultural produce. Unless all the three conditions are fulfilled it 
is not possible for the Market Committee to accept mere statement that the C 
market fee had already been paid. (398-B-C-Df 
1.3. In the instant case, the first respondent did not admittedly file 
Form LL with the Market Committee. It filed Form M only after the prescribed 
time limit. Even in that Form, Col. 7 was not filled up. Thus the stand taken 
by the Market Committee that the first respondent was liable to pay market D 
fee was correct. The High Court has unfortunately overlooked the above 
facts and proceeded on the footing that there was only a delay in filing 
required declaration. [398-E-F] 
2. The first respondent's right to claim exemption from payment of 
market fee shall not be defeated as it is stated to have already been paid in E 
the area where the produce was purchased. The first respondent is also 
willing to file the declaration and certificate in Form LL. Hence the first 
respondent is directed to file the declaration and certificate in Form LL with 
the Market Committee within a period of two weeks and the latter shall on 
such filing of the declaration and certificate grant exemption to the first 
respondent from payment of market fee if the other conditions in the rule F 
are satisfied irrespective of the period of limitation prescribed in the rule. 
(399-A-B, D-Ef 
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 6081 of 
1998. 
From the Judgment and Order dated 18.12.97 of the Punjab and Haryana 
High Court in C.W.P. No. 10984of1997. 
K.T.S. Tuls

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