LexMIS ARIHANT UDHYOG versus STATE OF RAJASTHAN & ORS.
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[2017) 7 S.C.R. 157 MIS ARIHANT UDHYOG v. STATE OF RAJASTHAN & ORS. (Civil Appeal No. 8277 of 2017) JUNE 09, 2017 11"· K. SIKRI AND ASHOK BHUSHAN, JJ.) Rajasthan Agricultural Produce Markets Act, 1961- ss.14, A B 17 - Rajasthan Agriculture Produce Market Rules, 1963 - r.58 - Agriculture Produce Market Fee - Payment of - Whether the C appellants who are purchasing the material which is admittedly 'agriculture produce' and bringing the same to the market area are liable to pay the market fee on the said produce - Held: The answer would depend upon when and at what stage the title in the goods passes from seller to appellant-buyer.- If the entire transaction takes place outside the State and ownership in goods also passes outside D the State, then the market fee is not payable - Further, it will depend upon the applicability of s.4 r/w. s. I 9 of the Sale of Goods Act, 1930...:. S.4 deals with the contract of sale whereas as per s.19, property passes from seller to buyer when it is intended to pass and such intention is to be gathered from the contract - In the instant E case, the terms and conditions of the contract indicate that responsibility of the seller ceases as soon as goods are delivered, which means the seller remained responsible till the delivery of goods - Such a responsibility can be only if the ownership remains of the seller - No document produced by the appellant demonstrated the intention that property in goods passed in their favour before these goods were delivered - Therefore, sale was fructified only after the goods were brought to the market area and ownership in the goods passed from the seller to the appellants at the time when the goods were delivered in the market area - Thus, market fee payable by the appellants - Sale of Goods Act, 1930 - s.4 r/w. s.19 and ss. 20, 21. Rajasthan Agricultural Produce Markets Act, 1961 - Agriculture Produce Market Fee~ Plea of appellant that agriculture produce bought by it was not meant for further sale but was further processed at its factory, therefore, the Market Committee had no right to impose any levy and realise the market fee - Held: It is to 157 F G H 158 SUPREME COURT REPORTS [2017] 7 S.C.R. A be first ascertained whether agricultural produce was bought and sold in the market area or not which is a question which needs to be determined in each case - In instant case, no document produced by the appellant demonstrated the intention that property in goods passed in their favour before these goods were delivered - Therefore, B sale was fnictified only after the goocJs were brought to the market area - Once the goods bought are agriculture produce on which market fee is leviable in terms of the Schedule attached to the Act, then the market fee is payable - If it is thereafter used as raw material for manufacturing purpose, that would be of no consequence. c Disposing of the appeals, the Court HELD: Whether the appellants herein who are purchasing the material which is admittedly 'agricultural produce' and bringing the same to the area known as 'market area' and covered by the D provisions of the Rajasthan Agricultural Produce Markets Act, 1961 and Rajasthan Agricultural Produce Market Rules, 1963 are liable to pay the market fee on the said produce? 1. The applicability of Section 17 of the Rajasthan Agricultural Produce Markets Act, 1961 read with Rule 58 of E the Rajasthan Agricultural Produce Market Rules, 1963 would depend upon the question as to whether agricultural produce is bought and sold by the licensee in the market area'. The answer to the aforesaid issue would depend upon the question as to when and at what stage the title in the goods passes. If the entire transaction takes place outside the State of Rajasthan and the F ownership in the goods also passes outside Rajasthan, then the market fee is not payable. The answer to the aforesaid question would depend upon the applicability of Section 4 read with Section 19 of the Sale of Goods Act, 1930, which provisions are to be applied keeping in view the terms and conditions on which the G goods are sold. That is the exercise which is done by the High Court by looking into the terms on which the goods were sold to appellant. Insofar as appellant is concerned, this was the only invoice produced before the High Court and is also made Annexure in the present proceedings. 'On going through the same, there is no fau
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