VENUGOPALA RICE MILL Vs. SECRETARY AGRICULTURAL MARKET COMMITTEE PALAKOL

JUDGEMENT

(1.) The petitioners are all registered traders carrying on business in paddy and rice within the notified market area of the Agricultural Market Committee, Palakole. They have all obtained licences under Section 7 (1) of the Andhra Pradesh (Agricultural Produce and Livestock) Markets Act, 1966 (hereinafter referred to as 'the Act') from the Market Committee, Palakole, which is the respondent in this writ petition. The trade in paddy and rice is controlled by the various Control Orders issued under Section 3 of the Essential Commodities Act, 1955 with regard to the sale and purchase. Under the provisions of the A. P. Rice Procurement (Levy) and Restriction on Sale Order, 1967, the petitioners have to deliver the prescribed quantity of rice to the Agent of the State Government at the notified price. Under the A. P. Rice (Procurement Ex-Mill Prices) Order, 1975, issued in G. O. Ms. No. 901 dated 8-10-1975 the price for quintal inclusive of taxes on paddy and exclusive of sales tax and cost of new gunny bag, the price of paddy and rice was fixed. But subsequently by an amendment to the said G. O. issued in G. O. Ms. No. 116, F. and A. dated 24-2-1977, the Government reduced the levy price of rice by Rs. 3.00 for each variety. The said amendment was given retrospective effect from 7-9-1976. Later the Government again issued G. O. Ms. No. 734 Food and Agriculture (Civil Supplies) dated 14-10-1977 wherein the price of paddy was fixed. In the said order it was clearly mentioned that the price fixed was exclusive of purchase tax, market fee and cost of new gunny bag.

(2.) The petitioners delivered the levy rice to the Food Corporation of India in consultation with the State Civil Supplies Corporation in compliance with the A. P. Rice Procurement (Levy) and Restriction and Sale Order, 1967. The paddy and rice are undisputedly notified agricultural produce, duly notified as Items (1) and (2) in G. O. Ms. No. 2095 F. A. (Ag. IV) dated 29-10-1968. Therefore, the Market Committee is entitled to levy fees under Section 12 (1) of the Act. So the Market Committee raised a demand against the petitioners for the payment of the market fee on the value of levy rice delivered to the Food Corporation of India and the A. P. State Civil Supplies Corporation from 7-9-1966 till the date of default. The petitioners have now approached this Court invoking the extraordinary jurisdiction of this Court under Article 226 of the Constitution of India to restrain the respondents from levying and collecting the market fee from the petitioners contending that the respondents have no power to do so under Section 12 (2) of the Act.

(3.) The question that falls for consideration is whether the Market Committee has power under Section 12 (2) of the Act to levy and collect the market fee from the petitioners who are registered traders in paddy and rice.