RAJDHANI PLYWOOD INDUSTRIES (PVT.) LTD. Vs. DIRECTOR OF U.P. RAJYA MANDI PARISHAD
HIGH COURT OF UTTARAKHAND (AT: NAINITAL)
Rajdhani Plywood Industries (Pvt.) Ltd.
Director of U.P. Rajya Mandi Parishad
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(1.) The petitioner is in the business of manufacture and sale of "veneer" and, for this purpose, holds a licence both for manufacture as well as for sale. The petitioner's factory is situate within the market yard of Village Chakarpur. The raw material used for the manufacture of Veneer is 'wood', which is an agricultural produce as specified under Head 'H' of the notification issued under Section 6 of the Uttar Pradesh Krishi Utpadan Mandi Adhiniyam, 1964 (hereinafter referred to as the Act). For the purpose of manufacture of veneer, the petitioner is importing logs of a tree known as "kerning", which is grown in Malaya. According to the petitioner, veneer is not an agricultural produce as defined in Section 2(a) of the Act. Consequently, no mandi fee could be imposed upon the petitioner for the sale of veneer. The Secretary, Mandi Samiti, however, by an order dated 29.01.1995, directed the petitioner to deposit Rs. 9,27,930.44 towards mandi fee on the sale of veneer for various period. The petitioner, being aggrieved, filed a revision under Section 32 of the Act, which was dismissed. The Director held that veneer is an agricultural produce and, consequently, the petitioner was exigible to mandi fee on the sale of veneer. The petitioner, being aggrieved, has filed the writ petition praying for the quashing of the order of Director dated 17.06.1996 and has further prayed that veneer manufactured by the petitioner is not exigible to mandi fee under Section 17(iii)(b) of the Act.
(2.) Heard Ms. Menaka Tripathi, the learned counsel for the petitioner and Mr. J.C. Belwal, the learned counsel for the respondents.
(3.) The core issue which arises for consideration in the present petition is whether "veneer" manufacture from logs remains a wood and consequently an agricultural produce or not?;
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