{"id":139477,"date":"1998-12-04T00:00:00","date_gmt":"1998-12-03T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/haryana-state-agricultural-vs-sh-ganesh-rice-and-general-mills-on-4-december-1998"},"modified":"2018-08-18T19:28:46","modified_gmt":"2018-08-18T13:58:46","slug":"haryana-state-agricultural-vs-sh-ganesh-rice-and-general-mills-on-4-december-1998","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/haryana-state-agricultural-vs-sh-ganesh-rice-and-general-mills-on-4-december-1998","title":{"rendered":"Haryana State Agricultural &#8230; vs Sh. Ganesh Rice And General Mills &#8230; on 4 December, 1998"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">Haryana State Agricultural &#8230; vs Sh. Ganesh Rice And General Mills &#8230; on 4 December, 1998<\/div>\n<div class=\"doc_bench\">Bench: S. Saghir Ahmad, M. Srinivasan<\/div>\n<pre>           CASE NO.:\nAppeal (civil)  6081 of 1998\n\nPETITIONER:\nHARYANA STATE AGRICULTURAL MARKETING BOARDS AND ORS.\n\nRESPONDENT:\nSH. GANESH RICE AND GENERAL MILLS AND ANR.\n\nDATE OF JUDGMENT: 04\/12\/1998\n\nBENCH:\nS. SAGHIR AHMAD &amp; M. SRINIVASAN\n\nJUDGMENT:\n<\/pre>\n<p>JUDGMENT<\/p>\n<p>1998 Suup(3) SCR 394<\/p>\n<p>The Judgment of the Court was delivered by SRINIVASAN J., Leave granted.\n<\/p>\n<p>I. The first respondent, a dealer under the Punjab Agricultural Produce<br \/>\nMarket act, 1961 (hereinafter referred to as &#8216;the Act&#8217;) purchased paddy<br \/>\nfrom areas outside the jurisdiction of the Market Committee, Karnal between<br \/>\n8.12.96 and 1.1.97 amounting to Rs. 5,94,630.35 for processing. It<br \/>\nsubmitted a return in Form M under Rule 31 of the Punjab Agricultural<br \/>\nProduce Markets (General) Rules, 1962 (hereinafter referred to as The<br \/>\nRules&#8217;) on 17.3;97 setting but the details of the purchases. Column 7 in<br \/>\nthe form provides for stating whether fee was leviable and if not, why In<br \/>\nthe return filed by the first respondent as aforesaid in Form M the said<br \/>\ncolumn was left blank. The Market Committee, Karnal issued Memo No. 241<br \/>\ndated 18.3.97 to the first respondent, pointing out the delay in filing the<br \/>\nreport and   informing  it that fee of Rs. 11 ,892.60 was payable   on the<br \/>\npurchase and the same may be deposited within a week and in case of default<br \/>\naction will be taken. On 21.3.97, another memo was issued along with a<br \/>\ncertified copy of rule 30(5) of the Rules, pointing out that the first<br \/>\nrespondent had not given necessary information and declaration in time and<br \/>\nas such liable to pay the fee claimed already.\n<\/p>\n<p>2.  The first respondent sent a reply on 4.4.91 claiming exemption from<br \/>\npayment on the ground that the fee had been paid at the place of purchase<br \/>\nand it was not payable second time. The Market Committee sent notices on<br \/>\n8.4.97 and 28.4:97 rejecting the-stand of the first respondent and<br \/>\nreiterating that the relevant Rules were not complied with and the<br \/>\nrequisite forms were not filed, The Market Committee forwarded the papers<br \/>\nto the Assistant collector, Grade II, Kamal (the 4th petitioner herein) for<br \/>\nrecovery of the fee as arrears of land revenue and the latter issued notice<br \/>\ndated 10.6.97 to the first respondent treating it as a &#8216;defaulter&#8217;.\n<\/p>\n<p>3. The first respondent filed a writ petition in the High Court for<br \/>\nquashing proceedings including the levy of market fee. The High Court<br \/>\nproceeded on the footing that the first respondent had paid the fee at the<br \/>\nplace where the purchase was made and there was only a delay in complying<br \/>\nwith the Rules. The High Court held that mere delay will not enable the<br \/>\nMarket Committee to levy fee for second time even though it may be entitled<br \/>\nto levy a penalty. Consequently, the High Court allowed the writ petition<br \/>\nholding that the levy of market fee was without jurisdiction. Aggrieved by<br \/>\nthe said judgment, the appellants have preferred this appeal by Special<br \/>\nLeave.\n<\/p>\n<p>4.  Rule 30 of the Rules provides that no market fee shall be levied onthe<br \/>\nsale or purchase of any agricultural produce in respect of which such fee<br \/>\nis already paid in the notified market area in which the said produce was<br \/>\nmanufactured of extracted. Sub-rules (3) to (5) are relevant in this case.<br \/>\nThey read as follows:-\n<\/p>\n<p>&#8220;(3) The dealer who claims exemption from the payment of market fee<br \/>\nleviable on any agricultural produce manufactured or extracted from the<br \/>\nagricultural produce in respect of which the market fee has already been<br \/>\npaid in another notified market area, shall make declaration and give<br \/>\ncertificate to the Committee in Form LL, where the fee has already been<br \/>\npaid within twenty days of the day of bringing of agricultural produce<br \/>\nwithin the notified market area. Form LL shall be prepared in quadruplicate<br \/>\nform the booklets duly attested and issued by the Secretary of the<br \/>\nCommittee against the payment fixed by the Committee. It will be the duty<br \/>\nof the dealer claiming exemption from the market fee under this sub-rule to<br \/>\nsend the original copy of Form LL to the Committee within whose market area<br \/>\nthe agricultural produce is brought. The second copy shall be sent to the<br \/>\noffice of the Committee within whose market area such agricultural produce<br \/>\nwas bought, and the third and fourth copies shall be retained by the<br \/>\ndealer-purchaser and the dealer-seller, respectively and the same shall be<br \/>\nkept as a part of their accounts maintained in respect of market fees.&#8221;\n<\/p>\n<p>&#8220;(4) It shall be the duty of the dealer claiming exemption from market fee<br \/>\nunder sub-rule (3) and (5) to produce a copy of the R\/R, forwarding note,<br \/>\nbuilty or challan, as the case may be, duly signed by him or his authorised<br \/>\nagent in the office of the Committee from whose market area the<br \/>\nagricultural produce is brought before it is unloaded, the second copy in<br \/>\nthe office of the Committee within whose market area the agricultural<br \/>\nproduce is brought before it is unloaded .and the third copy to be retained<br \/>\nby him:\n<\/p>\n<p>Provided that, if no such copy of R\/R, forwarding note, builty or challan<br \/>\nis produced in the office of the concerned Committee, no claim for<br \/>\nexemption shall be entertained&#8221;.\n<\/p>\n<p>&#8220;(5) The agricultural produce brought for processing from within the State<br \/>\n&#8216;or from out side the State&#8217; and for which market fee has already been paid<br \/>\nin any market in the Slate &#8216;or out side the State&#8217;, shall be exempted from<br \/>\npayment of market fee second time. Provided that the dealer who claims<br \/>\nexemption under sub-rule (5) from the payment of fee leviable on any<br \/>\nagricultural produce brought for processing shall make declaration and give<br \/>\ncertificate to the Committee in Form LL duly attested by the Secretary of<br \/>\nthe Committee where fee has already been paid, within twenty days of the<br \/>\nbringing agricultural produce within the notified market area and complies<br \/>\nwith the provisions of sub-rule(2)&#8221;.\n<\/p>\n<p>5. Under the above rule, three conditions are required to be satisfied for<br \/>\nthe purpose of claiming exemption by a dealer:\n<\/p>\n<p>A.  The dealer should have paid the market fee already in a market area.\n<\/p>\n<p>B. The dealer shall make a declaration and give certificate to the<br \/>\nCommittee in Form LL where the fee has already been paid.\n<\/p>\n<p>C. Such Form shall be filed within 20 days of the date of bringing the<br \/>\nagricultural produce within the notified market area.\n<\/p>\n<p>6 Unless all the above conditions are fulfilled it is not possible for the<br \/>\nMarket Committee to accept a mere statement that market fee had already<br \/>\nbeen paid and the dealer was not liable to pay it again. Compliance with<br \/>\nthe rule is not a mere technical formality. In the present case, first<br \/>\nrespondent did not admittedly file Form LL with the Market Committee. It<br \/>\nfiled Form M only after the prescribed time limit. Even in that Form, as<br \/>\npointed out already, Col. 7 was not filled up. In such circumstances the<br \/>\nstand taken by the Market Committee that the first respondent was liable to<br \/>\npay market fee was correct.\n<\/p>\n<p>7. The High Court has unfortunately over looked the fact that the first<br \/>\nrespondent had not filed Form LL and make a declaration or give a<br \/>\ncertificate as required by the Rule, but instead filed only Form M and that<br \/>\ntoo leaving column 7 blank. The High Court has proceeded on the footing<br \/>\nthat there was only a delay in filing the required declaration. Hence the<br \/>\njudgment of the High Court is not sustainable and the appeal is to be<br \/>\nallowed. But learned counsel for the first respondent points out rightly<br \/>\nthat in the memo issued by the Market Committee oil 18.3.97, it was not<br \/>\npointed out that the first respondent ought to file Form LL containing<br \/>\ndeclaration and certificate. Nor was the attention of the first respondent<br \/>\ndrawn to Rule 30. It is also submitted by learned counsel that the market<br \/>\nfee was actually paid when the produce was purchased. According to him all<br \/>\nthe relevant receipts for payment of market fee in the area are readily<br \/>\navailable with the first respondent.\n<\/p>\n<p>8. In the circumstances we are of the opinion that the first respondent&#8217;s<br \/>\nright to claim exemption from payment of market fee in Karnal shall not be<br \/>\ndefeated as it is stated to have been paid already actually in the area<br \/>\nwhere the produce was purchased. The first respondent is also willing to<br \/>\nfile me declaration and certificate in Form LL. Mr. K.T.S. Tulsi, learned<br \/>\nsenior counsel for the appellants has submitted that if the declaration and<br \/>\ncertificate in Form LL are filed within 2 weeks from this date the Market<br \/>\nCommittee would not insist upon compliance with the period of limitation<br \/>\nprescribed in the Rule in view of the defect in the memo dated 18.3.97 and<br \/>\nconsider the question whether the fee had been paid already and the first<br \/>\nrespondent is entitled to exemption.\n<\/p>\n<p>9.  Hence, We direct the first respondent to file the declaration and<br \/>\ncertificate in Form LL with the Marketing Committee, Karnal within a period<br \/>\nof two weeks from this date and the latter shall on such filing of the<br \/>\ndeclaration and certificate grant the exemption to the first respondent<br \/>\nfrom payment of market fee if the other conditions in the Rule are<br \/>\nsatisfied irrespective of the period of limitation prescribed in the Rule.<br \/>\nThis appeal is disposed of with the above directions.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India Haryana State Agricultural &#8230; vs Sh. Ganesh Rice And General Mills &#8230; on 4 December, 1998 Bench: S. Saghir Ahmad, M. Srinivasan CASE NO.: Appeal (civil) 6081 of 1998 PETITIONER: HARYANA STATE AGRICULTURAL MARKETING BOARDS AND ORS. RESPONDENT: SH. GANESH RICE AND GENERAL MILLS AND ANR. DATE OF JUDGMENT: 04\/12\/1998 BENCH: [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[30],"tags":[],"class_list":["post-139477","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Haryana State Agricultural ... vs Sh. 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