RAKESH KUMAR JAIN, J. - (1.) This petition is directed against the assessment order dated 12.07.2010 (Annexure P -10/B), order dated 24.03.2011 (Annexure P -15) passed by the General Manager (Enforcement), Punjab Mandi Board, rejecting the appeal filed by the petitioner, order dated 19.07.2013 (Annexure P -59) passed by the Special Secretary, Department of Agriculture, State of Punjab, dismissing the revision petition filed by the petitioner, order dated 27.08.2013 (Annexure P -63), dismissing the application for review/recalling by the same authority and also for quashing the orders dated 25.04.2011 and 12.06.2012 passed by the Under Secretary (Agriculture), Government of Punjab and all consequent notices, being violative of the Punjab Agricultural Market Produce Act, 1961 (hereinafter referred to as the "Act") and the Punjab Agricultural Market Produce Rules, 1962 (hereinafter referred to as the "Rules") and also to declare the seed potato to be different and distinct from normal potato, holding the same not to be agricultural produce, as defined in the Act.
(2.) In brief, the petitioner -company, previously known as "Chambal Agritech Limited", is a subsidiary of Technico Pty. Limited, Australia and is engaged in the production of Tissue Culture based soil free "TECHNITUBER® seed potatoes" using its own patented technology. The TECHNITUBER® seed potatoes are produced through a complex procedure applied to pathogen tested tissue culture plants under controlled environment conditions. These TECHNITUBER® seed potatoes are planted/grown under contract framing to produce high yielding early generation seed potatoes for local farmers as well as for other farmers in and around the country. The process undertaken by the petitioner for growing the TECHNITUBER® seed potatoes is reproduced as under: - "1. STAGE GENERATION 0 (G -0) - 1 YEAR DURATION Pathogen tested tissue culture plantlets are put through a complex series of integrated Agri Biotech processes under controlled production protocols and environmental conditions to produce TECHNITUBER® seeds. The TECHNITUBER® seeds are then conditioned, pre - treated and stored so that they sprout and made ready for field planting and all this is carried out at the petitioner - company's seed facility under precise conditions. 2. STAGE GENERATION 1 (G -1) 5 -6 months duration The petitioner -company contacts farmers in the State of Punjab, carries out a detailed selection of their land (based on technical requirements) and enters into written agreements with the farmers. That a sample seed multiplication through contract farming agreement is annexed herewith as ANNEXURE P -1. The TECHNITUBER® seeds are then provided to the farmers who plant the same in their fields. The harrowing, cross harrowing, planking, sowing, weeding, hilling, chiseling, rouging, irrigating, harvesting, grading, bagging, etc. of the seeds is carried out under strict supervision and advice of the petitioner -company's agronomy team. All the basic materials/ingredients like seeds, chemicals (insecticides, fungicides, micro -nutrients) and packing material is provided by the petitioner - company. At harvest during the month of February/March every year the seed potatoes of Generation 1 (G1) (hereinafter interchangeably referred to as "Seed" also) is lifted from the field. At this stage, the seed is dormant (not fit for sowing). The seed potatoes (G1) are placed in a cold storage to initiate the process of breaking the dormancy under strictly monitored conditions such as temperature, relative humidity, carbon dioxide levels, etc. 3. STAGE GENERATION 2 (G -2):1 YEAR DURATION The seed (G1) is transferred from cold storage and planted in the fields in the next season (October of the next year) to produce the Generation 2 seeds. Similar to Generation 1 all the work is carried out with the materials supplied and overall supervision by the agronomy team of the petitioner -company. The farmers are remunerated at pre -agreed rates per kilogram of the G -2 seeds produced. These seeds are still dormant (not fit for sowing) and are once again lifted and placed in cold storage to re -initiate the process of breaking the dormancy. After reconditioning, the product is taken out from cold storage, dried, separated, repacked and finally sold to potato growers in the market as seed potatoes."
(3.) The petitioner -company has been the pioneer in India for production of tissue culture based TECHNITUBER® seed potatoes which are grown in village Manpura, Tehsil Baddi, District Solan, Himachal Pradesh, which are not meant for human consumption and are only meant for cultivation by farmers into a final crop of potatoes which is fit for human consumption. It is alleged that the Seeds Act, 1966 permits the sale of certified seeds as well as non -certified seeds and the non -certified seeds are known as "truthfully labeled seeds" i.e. self certified with respect to germination, genetic purity etc. Similarly, the petitioner -company sells its seeds as "truthfully labeled seeds". It is further averred in the petition that the "seed", as defined under the Seeds Act, 1966, includes tubers which are being grown by the petitioner on the basis of contract farming. It is further alleged that initially the petitioner -company started framing itself by entering into "Land Management Agreements" whereby it carried out the seed multiplication through cultivation itself but due to the increase in production, the petitioner -company started outsourcing the said task to farmers through contract farming. The petitioner -company was granted license w.e.f. 21.02.2003 to carry on the business of a dealer (wholesale at State level) for sale of seed potatoes in the whole of Punjab State as per the Seed Act, 1966 and Seed (Control) Order, 1983 and the said license was renewed from time to time. It is further alleged that the Punjab Mandi Board clarified that some specific crops planted through contract farming shall attract Market Fee and Rural Development Fee (hereinafter referred to as the "MF & RDF") @ 0.25% instead of 2%, which was deposited by the petitioner with the Market Committee, Amloh, after a memorandum of settlement was arrived at but the Market Committee, Amloh, passed a fresh assessment order on 12.07.2010 (Annexure P -10/B), demanding MF & RDF @ 2% each for the period from 2003 to 13.03.2006 and also imposed penalty asking the petitioner -company to pay a sum of Rs.29,03,840/ -, which has been specifically impugned in this petition.;