- (1.) Levy of market fee on Zafrani Zarda in terms of the provisions of the U.P. Krishi Utpadan Mandi Adhiniyam, 1964 (for short, 'the Act') is in question in these appeals which arise out of a common judgment and order dated 21st July, 2003.
(2.) The Act was enacted to provide for the regulation of sale and purchase of agricultural produce and for the establishment, superintendence and control of markets therefor in Uttar Pradesh.
(3.) Before embarking on the question, we may notice some of the relevant provisions of the Act. Section 2(a), 2(d), 6, 8, 17(iii)(b) read as under: 2(a) 'Agricultural produce' means such items of produce of agriculture, horticulture, viticulture, apiculture, sericulture, pisciculture, animal husbandry or forest as are specified in the Schedule, and includes admixture of two or more of such items, and also includes any such item in processed form and further includes gur, rab, shakkar, Khandsari and jaggery; 2(a-1) "Board" means the State Agricultural Produce Markets Board constituted under Section 26-A; 2(d) "Central Warehousing Corporation" means the Central Warehousing Corporation established or deemed to be established under the Warehousing Corporations Act, 1962; 2(d-1)"Collector", in relation to a Committee for a Market area means the Collector of the District where the principal Market Yard of that Market Area is situated, and includes such other officer as may be authorized by him in that behalf; 6. Declaration of Market Area.- On the expiry of the period referred to in Section 5, the State Government shall consider the objections received within the said period and may thereupon declare, by notification in the Gazette, and in such other manner as may be prescribed, that the whole or any specified portion of the area mentioned in the notification under Section 5 shall be the Market Area in respect of such agricultural produce, and with effect from such date as may be specified in the declaration. 8. Alteration of Market Area and Modifications of the List of Agricultural produce. - (1) The State Government, where it considers necessary or expedient in the public interest so to do, may, by notification in the Gazette, and in such other manner as may be prescribed and with effect from the date specified in the notification,-- (a) include any agricultural produce in, or exclude any agricultural produce from, the list of agricultural produce specified in the notification under Section 6 ; (b) include any area in, or exclude any area from, the Market Area specified in the notification under Section 6 ; (c) divide a Market Area specified in the notification under Section 6 into two or more separate Market Areas ; (d) amalgamate two or more Market Areas specified in the notification under Section 6 into one Market Area ; or (e) declare that a Market Area specified in the notification under Section 6 shall cease to be such area : Provided that before action under this sub- section is taken, the State Government shall invite and consider, in the prescribed manner, objections, if any, against the proposed action. (2) When during the term of a Market Committee the limits of the Market Area for which it is established are altered under clause (b), clause (c) or clause (d) of sub-section (1), the following consequences shall, with effect from the date specified in the notification, follow : (a) the Market Committee shall stand dissolved and its members shall vacate their offices as such members ; (b) a new Market Committee shall be constituted for the modified or newly created Market Area in accordance with the provisions of Section 13 ; (c) all property and assets, all rights, liabilities and obligations of the dissolved Market Committee in respect of civil or criminal proceedings, contracts, agreements or other matter or thing arising in relation to any part of the Market Area of a dissolved Market Committee shall be vested in and stand transferred to the new Market Committee having jurisdiction over that part. (3) Where a Market Area ceases to be such area under clause (e) of sub-section (1), the following consequences shall, with effect from the date specified in the notification, follow : (a) the Market Committee shall stand dissolved and its members shall vacate their offices as such members ; (b) the Principal Market Yard and Sub- Market Yards, if any, established therein shall cease to be such ; (c) the unspent balances of the Market Committee Fund and other assets and liabilities of the Market Committee shall vest in the State Government : Provided that the liability of the State Government shall not extend beyond the assets so vested. 17. Powers of the Committee.--A Committee shall, for the purposes of this Act, have the power to-- (i) & (ii) .... (iii) Levy and collect-- (a) such fees as may be prescribed for the issue or renewal of licences; and (b) market fee which shall be payable on transactions of sale of specific agricultural produce in the market area at such rates, being not less than one percentum and not more than two and a half percentum of the price of the agricultural produce so sold as the State Government may specify by notification, and development cess which shall be payable on such transactions of sale at the rate of half percentum of the price of the agricultural produce so sold, and such fee or development cess shall be realized in the following manner :- (1) If the produce is sold through a commission agent, the commission agent may realize the market fee and the development cess from the purchaser and shall be liable to pay the same to the Committee; (2) if the produce is purchased directly by a trader from a producer, the trader shall be liable to pay the market fee and development cess to the Committee; (3) if the produce is purchased by a trader from another trader, the trader selling the produce may realize it from the purchaser and shall be liable to pay the market fee and development cess to the Committee : Provided that notwithstanding anything to the contrary contained in any judgment, decree or order of any court, the trader selling the produce shall be liable and be deemed always to have been liable with effect from June 12, 1973 to pay the market fee to the Committee and shall not be absolved from such liability on the ground that he has not realized it from the purchaser : Provided further that the trader selling the produce shall not be absolved from the liability to pay the development cess on the ground that he has not realized it from the purchaser; (4) in any other case of sale of such produce, the purchaser shall be liable to pay the market fee and development cess to the Committee : Provided that no market fee or development cess shall be levied or collected on the retail sale of any specified agricultural produce where such sale is made to the consumer for his domestic consumption only : Provided further that notwithstanding anything contained in this Act, the Committee may at the opition of, as the case may be, the commission agent, trader or purchaser, who has obtained the licence, accept a lump sum in lieu of the amount of market fee or development cess that may be payable by him for an agricultural year in respect of such specified agricultural produce, for such period, or such terms and in such manner as the State Government may, by notified order specify : Provided also that no market fee or development cess shall be levied on transactions of sale of specified agricultural produce on which market fee or development cess has been levied in any market area if the trader furnishes in the form and manner prescribed, a declaration or certificate that no such specified agricultural produce market fee or development cess has already been levied in any other market area.";