DHARAMPAL SATYAPAL LTD Vs. STATE OF BIHAR
LAWS(SC)-2008-5-7
SUPREME COURT OF INDIA (FROM: PATNA)
Decided on May 14,2008

DHARAMPAL SATYAPAL LTD.,AGRICULTURAL PRODUCE MARKET COMMITTEE, MUZZARFARPUR,PRABHAT ZARDA FACTORY (INDIA) LTD. Appellant
VERSUS
STATE OF BIHAR,PRABHAT ZARDA FACTORY (INDIA) LTD. Respondents

JUDGEMENT

- (1.) These three appeals involve a question as to whether the levy of market fee on Zafrani Zarda in terms of the provisions of Bihar Agricultural Produce Market Act, 1960 (for short the Act) is valid which arise out of a common order dated 7th October, 2002 passed by the High Court of Patna in three writ petitions filed by the appellants.
(2.) Writ petitioners are manufacturers of Zafrani Zarda. It is indisputably a manufactured form of tobacco. The question as to whether Zafrani Zarda is manufactured item of tobacco or not came up for consideration before this Court in Agricultural Produce Market Committee and others v. M/s. Prabhat Zarda Factory and another, [1994 Supp (2) SCC 514]. This Court noticed that the definition of 'agricultural produce' has undergone a change so as to include the 'manufactured goods' therefrom by way of amendment on 30th April, 1982. This Court noticed that the judgment of the High Court did not take into consideration the changed definition of 'agricultural produce' with effect from 30th April, 1982 but upheld the judgment of the High Court in respect of levy of market fee prior thereto.
(3.) Indisputably again with effect from 30th April, 1982 Zafrani Zarda was inserted in the Schedule appended to the said Act, by reason of a Notification dated 31st July, 1991, issued by the State of Bihar which reads thus:-. "No. 6/Misc. 13/91 - 6386 .... Governor of Bihar in exercise of its powers conferred under Section 39 of Bihar Agricultural Produce Marketing Act, 1980 (Bihar Act 16 of 1960) makes the following amendment in the Schedule of the abovementioned Act :- AMENDMENT In the said list -Heading 11 - following heads should be added or included after head 1 under Narcotic - Tobacco. 2. Zarda 3. Zafrani Zarda etc. The effect of this amendment shall be considered to be in force from the date of implementation of Bihar Agricultural Produce Marketing Act, 1960. By order of Governor of Bihar Nagendra Tiwari Joint Secretary to Govt.";


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