LexSTATE OF PUNJAB & ORS. versus M/S PUNJAB SPINTEX LTD.
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[2024] 7 S.C.R. 745 : 2024 INSC 526 State of Punjab & Ors. v. M/s Punjab Spintex Ltd. (Civil Appeal No. 10970-10971 of 2014) 15 July 2024 [Vikram Nath* and Prashant Kumar Mishra, JJ.] Issue for Consideration Whether the exemption from payment of Market Fee, granted under the Industrial Policy, 2003, of the Punjab Government, can be said to include exemption from Rural Development Fee. Headnotes† Market Fees – Scope of Exemption in relation to fees collected under two different statutes – Explained: Held: The preamble of the Punjab Agricultural Produce Markets Act, 1961, which governs the collection of market Fee, clearly stipulates that it is a statute to provide for law relating to better regulation of purchase, sale, storage and processing of agricultural produce and for establishment of markets in the State – Whereas, the Punjab Rural Development Act, 1987, which governs the collection of Rural Development Fee, on the other hand, is enacted for providing relief for the loss of agricultural produce, accelerating rural development, improve facilities for purchasers of agricultural produce and augment agricultural production – It is not uncommon for different statutes, concerning similar area of law, to have convergence of interests to some degree – However, this would not imply that benefits extended to one statute will be presumed to flow to the other statute as well – The 2003 Policy does not specifically exempt Rural Development fees – Any contrary interpretation would considerably broaden the canvas of the incentives available under the 2003 Policy, which was never intended – The interpretation that exemption from Market fees is inclusive of Rural Development fees shall be contrary to the statutory provisions and objective behind both the Acts as well as the 2003 Policy – Hence, the Market Fee and the Rural Development Fee cannot be equated or assumed to be same or similar for the purposes of exemption. [Paras 20 to 24] * Author 746 [2024] 7 S.C.R. Digital Supreme Court Reports List of Acts Punjab Agricultural Produce Markets Act, 1961; Punjab Rural Development Act, 1987. List of Keywords Market Fee; Rural Development Fee. Case Arising From CIVIL APPELLATE JURISDICTION: Civil Appeal Nos. 10970-10971 of 2014 From the Judgment and Order dated 27.01.2010 and 24.09.2010 in CM No. 3144 of 2010 and CWP No. 14847 of 2009 of the High Court of Punjab and Haryana at Chandigarh Appearances for Parties Gurminder Singh AG/Sr. Adv., Vivek Jain, D.A.G., Karan Sharma, Advs. for the Appellants. Aman Lekhi, Sr. Adv., Sachin Jain, Ms. Snehil Sonam, Rajiv Ranjan Dwivedi, Sachin Pahwa, Advs. for the Respondent. Judgment / Order of the Supreme Court Judgment Vikram Nath, J. 1. These appeals, by special leave, assail the correctness of the judgment and orders dated 27.01.2010 and 24.09.2010 passed by the Punjab & Haryana High Court, respectively in Civil W.P. No. 14847 of 2009 and C.M. No. 3144 of 2010 in the Writ Petition. 2. The matter pertains to exemption from payment of Market fee and Rural Development fee sought by the Respondent herein. The Respondent company was incorporated on 26.12.2006 and set up a spinning unit at Bathinda for manufacturing cotton yarn out of raw cotton. Thereafter, the Respondent company applied to the Appellant for grant of exemption from paying Market fee and Rural Development fee in terms of the Industrial Policy, 20031 and claimed to be similarly 1 2003 Policy, hereinafter [2024] 7 S.C.R. 747 State of Punjab & Ors. v. M/s Punjab Spintex Ltd. situated as M/s Partap Furane Pvt. Ltd., which is also engaged in the manufacturing of cotton yarn, and was granted exemption from payment of Market fee. 3. Respondent filed Civil W.P. No. 14847 of 2009 before the High Court of Punjab & Haryana seeking such exemption. Therein, in response to the notice issued, the Counsel for the State produced the minutes of meetings of the Empowered Committee held under the Chairmanship of the Chief Minister, Punjab, on 17.12.2009, which has been reproduced as follows: "i). Integrated Cotton Ginning and Spinning Units which have not sought the status of Mega Projects would be eligible for incentives under the Industrial Policy, 2003, including exemption from payment of market fee as per Para 11.4.2(i). This would be for a period of ten years from the date of issue of the notification. a. Units that have availed of the benefit under the Mega Projects Scheme but h
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