M/S.SRAN RICE MILLS Vs. STATE OF PUNJAB
LAWS(P&H)-2021-3-47
HIGH COURT OF PUNJAB AND HARYANA
Decided on March 26,2021

M/S.Sran Rice Mills Appellant
VERSUS
STATE OF PUNJAB Respondents

JUDGEMENT

ANIL KSHETARPAL,J. - (1.) Through this writ petition, the petitioner seeks a writ in the nature of certiorari to quash the order dated 04.05.2020, passed by the District Allotment Committee, which has been affirmed in appeal by the Director, Food, Civil Supplies and Consumer Affairs, Punjab, vide order dated 08.06.2020 and further affirmed by the Principal Secretary, Transport Department, Government of Punjab, Chandigarh, vide order dated 30.09.2020 in the Second Appeal.
(2.) In the State of Punjab, de-husking of paddy can be broadly divided in two different categories. One is Custom Milling whereas the other is Levy Rice. In Custom Milling, the paddy is purchased by the State Government or its instrumentalities and thereafter allocated to various rice mills for de-husking. After de-husking, the rice is supplied to the Central Government through Food Corporation of India (FCI) or other agencies. Similarly, FCI can itself purchase the paddy and get it de-husked. In this method, the rice millers, in fact, do a job work. In other words, the rice miller de-husk the paddy against some payment. Since the quantity of paddy to be de-husked is huge, therefore, every year the State of Punjab comes out with a policy which is known as the Punjab Custom Milling Policy for paddy as known as KMS policy (Kharif Marketing Season Policy for the relevant year)
(3.) In the other category, the rice miller after purchasing/procuring the paddy, de-husks it. After de-husking, the processed rice is subject to a fixed percentage of levy which the rice miller is required to supply to the government at a pre-determined price as per the Control Order issued by the Government in exercise of its powers under The Essential Commodities Act, 1955. The miller after contributing a fixed percentage of levy rice to the government, is entitled to market the remaining rice.;


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