{"id":148993,"date":"2001-03-02T00:00:00","date_gmt":"2001-03-01T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/g-giridhar-prabhu-ors-vs-agricultural-produce-market-on-2-march-2001"},"modified":"2018-11-24T19:50:48","modified_gmt":"2018-11-24T14:20:48","slug":"g-giridhar-prabhu-ors-vs-agricultural-produce-market-on-2-march-2001","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/g-giridhar-prabhu-ors-vs-agricultural-produce-market-on-2-march-2001","title":{"rendered":"G. Giridhar Prabhu &amp; Ors vs Agricultural Produce Market &#8230; on 2 March, 2001"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">G. Giridhar Prabhu &amp; Ors vs Agricultural Produce Market &#8230; on 2 March, 2001<\/div>\n<div class=\"doc_author\">Author: S N Variava<\/div>\n<div class=\"doc_bench\">Bench: V.N. Khare, S.N. Variava<\/div>\n<pre>           CASE NO.:\nAppeal (civil) 3982-3984  of  1999\n\n\n\nPETITIONER:\nG. GIRIDHAR PRABHU &amp; ORS.\n\n\tVs.\n\nRESPONDENT:\nAGRICULTURAL PRODUCE MARKET COMMITTEE\n\nDATE OF JUDGMENT:\t02\/03\/2001\n\nBENCH:\nV.N. Khare &amp; S.N. Variava\n\n\n\n\nJUDGMENT:\n<\/pre>\n<p>S. N. VARIAVA, J.\n<\/p>\n<p>L&#8230;I&#8230;T&#8230;&#8230;.T&#8230;&#8230;.T&#8230;&#8230;.T&#8230;&#8230;.T&#8230;&#8230;.T&#8230;&#8230;.T..J<\/p>\n<p>    These  Appeals  are against a Judgment dated 2nd  April,<br \/>\n1998.\n<\/p>\n<p>    Briefly stated the facts are as follows:\n<\/p>\n<p>    The\t Appellants  purchase  raw   cashew  nut  and  after<br \/>\nsubjecting the same to process of manufacture extract cashew<br \/>\nkernel.\t  The  cashew kernel is then sold by them  all\tover<br \/>\nIndia  as well as in International markets.  Both cashew nut<br \/>\nand  cashew  kernel are Notified Agricultural Produce  under<br \/>\nthe Schedule to the Karnataka Agricultural Produce Marketing<br \/>\n(Regulation)  Act,  1966 (hereinafter called the said  Act).<br \/>\nThe  Appellants\t have  licences\t under\t the  said  Act\t  as<br \/>\nImporters,  Traders, Exporters and Producers from the Market<br \/>\nCommittee.   The Appellants are paying market fee as per the<br \/>\nprovisions of Section 65(2A) when they purchase cashew nut.\n<\/p>\n<p>    The\t Market\t Committee issued Notices to the  Appellants<br \/>\ndirecting  them to collect market fee from their buyers\t and<br \/>\npay  the same to the Committee in respect of transactions of<br \/>\nsales of cashew kernel.\t These Notices were issued under the<br \/>\nprovisions of Section 65(2A)(iii) of the said Act.\n<\/p>\n<p>    The\t Appellants filed a Writ Petition in the High  Court<br \/>\nof Kerala praying for declaration that they were &#8220;Producers&#8221;<br \/>\nof  cashew kernel and, therefore, were not liable to collect<br \/>\nthe market fee from their purchasers and pay the same to the<br \/>\nCommittee.  They also sought a declaration that as producers<br \/>\nof  cashew kernel they did not even require a license.\t The<br \/>\nAppellants  sought  directions from the Court to  quash\t the<br \/>\nNotices\t issued by the Market Committee and to restrain\t the<br \/>\nMarket Committee from recovering market fee from them.\tThis<br \/>\nWrit  Petition came to be dismissed by a single Judge of the<br \/>\nHigh  Court on 21st August, 1996.  The Appellants then filed<br \/>\na  Writ\t Appeal\t which\talso came to  be  dismissed  by\t the<br \/>\nimpugned Judgment dated 2nd April, 1998.\n<\/p>\n<p>    The controversy in these Appeals is very limited.  There<br \/>\nis  no dispute that the Appellants are purchasing cashew nut<br \/>\nand  by\t a process of manufacture extracting cashew  kernel.<br \/>\nThere  is no controversy and no dispute that on the purchase<br \/>\ntransactions the Appellants are paying market fee.  There is<br \/>\nalso  no  dispute that on the sale transactions,  of  cashew<br \/>\nkernel,\t market fee is payable.\t The only dispute is whether<br \/>\nthe  Market Committee can insist that the Appellants realize<br \/>\nthe  market  fee  from their purchasers and pay\t it  to\t the<br \/>\nMarket\tCommittee  or  whether the Market Committee  has  to<br \/>\ncollect\t the  market  fee directly from\t the  purchasers  of<br \/>\ncashew kernel.\n<\/p>\n<p>    For an understanding of this question certain provisions<br \/>\nof  the\t said Act require to be looked at.  The Preamble  to<br \/>\nthe  said Act lays down that it is an Act to provide for the<br \/>\nbetter\tregulation of marketing of agricultural produce\t and<br \/>\nthe   establishment  and  administration   of  markets\t for<br \/>\nagricultural  produce  in the State of\tKarnataka.   Section<br \/>\n2(1)  of  the  said Act defines\t &#8220;Agricultural\tProduce&#8221;  as<br \/>\nfollows:\n<\/p>\n<p>    &#8220;2(1).   &#8220;Agricultural  Produce&#8221;  means the\t produce  or<br \/>\ngoods specified in the Schedule.&#8221;\n<\/p>\n<p>    It\tis an admitted position that initially under Item  8<br \/>\nof  the\t Schedule only cashew nut was included as  an  Item.<br \/>\nMarket\tfee  was sought to be levied on cashew kernel.\t The<br \/>\nMangalore  Cashew Manufacturing Association challenged\tthis<br \/>\nlevy  in the High Court of Kerala.  The High Court held that<br \/>\ncashew\tkernel was not included in the Schedule to the\tsaid<br \/>\nAct  and  it was thus not a Notified  Agricultural  Produce.<br \/>\nPursuant  to  this  decision the State Government  issued  a<br \/>\nNotification  under Section 5 read with Section 3 of the Act<br \/>\nand  included cashew kernel also in the Schedule.  Thus, now<br \/>\nboth  cashew nut and cashew kernel are two separate items in<br \/>\nthe  Schedule to the said Act.\tSections 2(5), 2(13), 2(14),<br \/>\n2(14A),\t 2(18A), 2(21), 2(28), 2(32), 2(33), 2(34) and 2(48)<br \/>\nof the said Act are relevant.  They read as follows:\n<\/p>\n<p>    &#8220;2(5).   &#8220;Buyer&#8221; or &#8220;purchaser&#8221; means a person who\tbuys<br \/>\nor agrees to buy goods;\n<\/p>\n<p>    2(13).   &#8220;Exporter&#8221; means a person other than a producer<br \/>\nwho  exports  goods or causes goods to be exported on  one&#8217;s<br \/>\nown  account or as agent of another person, from the  market<br \/>\narea  outside  such  area  for\t the  purpose  of   selling,<br \/>\nprocessing,  manufacturing  or for any other purpose  except<br \/>\nfor the purpose of one&#8217;s own domestic consumption, but shall<br \/>\nnot include a public carrier.\n<\/p>\n<p>    2(14).   &#8220;Goods&#8221; means any kind of notified agricultural<br \/>\nproduce.\n<\/p>\n<p>    2(14A)  `&#8221;Importer&#8221; means a person who imports or causes<br \/>\ngoods  to be imported on his own account or as an agent\t for<br \/>\nanother\t person\t from outside the market area into a  market<br \/>\narea  for the purpose of selling, processing,  manufacturing<br \/>\nor  for\t any  other purpose except for\tone&#8217;s  own  domestic<br \/>\nconsumption, but shall not include a public carrier.\n<\/p>\n<p>    2(18A)   &#8220;Marketing\t means\tbuying\t and   selling\t of<br \/>\nagricultural  produce  and   includes  grading,\t processing,<br \/>\nstorage,   transport,  packaging,   market  information\t and<br \/>\nchannels of distribution.\n<\/p>\n<p>    2(21).  &#8220;Market functionary&#8221; or &#8220;functionary&#8221; includes a<br \/>\nbroker,\t a  commission\tagent,\tan exporter,  a\t ginner,  an<br \/>\nimporter,  a presser, a processor, a stockist, a trader, and<br \/>\nsuch  other person as may be declared under the rules or the<br \/>\nbye-laws to be a market functionary.\n<\/p>\n<p>    2(28).    &#8220;Notified\t agricultural\tproduce&#8221;  means\t any<br \/>\nagricultural  produce  which  the State\t Government  has  by<br \/>\nnotification  issued  under Sections 4 and 5 declared as  an<br \/>\nagricultural  produce  the  marketing  of  which  shall\t  be<br \/>\nregulated in the market area.\n<\/p>\n<p>    2(32).   &#8220;Process&#8221;\tmeans  any  one of  the\t serious  of<br \/>\ntreatments to which raw agricultural produce is subjected to<br \/>\nmake it fir to use or consumption.\n<\/p>\n<p>    2(33).    &#8220;Processor&#8221;  means  a  person  who   processes<br \/>\nnotified agricultural produce by mechanical means.\n<\/p>\n<p>    2(34)  &#8220;Producer&#8221;  means a person who produces  notified<br \/>\nagricultural produce on one&#8217;s own account.-\n<\/p>\n<p>(i) by one&#8217;s own labour; or<\/p>\n<p>(ii) by the labour of any member of one&#8217;s family;  or<\/p>\n<p>(iii) under the personal supervision of oneself or any m<br \/>\nember  of  one&#8217;s  family by hired labour or by\tservants  on<br \/>\nwages  payable\tin  cash  or kind but not in  share  of\t the<br \/>\nproduce.\n<\/p>\n<p>    2(48).   &#8220;Trader&#8221;  means  a\t person\t who  buys  notified<br \/>\nagricultural  produce either for himself or as agent of\t one<br \/>\nor  more  persons  for the purpose of  selling,\t processing,<br \/>\nmanufacturing  or  for\tany other purpose,  except  for\t the<br \/>\npurpose of domestic consumption.&#8221;\n<\/p>\n<p>    The levy is under Section 65(1) of the Act.\t The mode of<br \/>\ncollection  is\tprovided under Section 65(2-A) of  the\tsaid<br \/>\nAct.  It reads as follows:\n<\/p>\n<p>    &#8220;65(2-A).\tThe  market fee payable under  this  section<br \/>\nshall be realised as follows, namely.-\n<\/p>\n<p>    (i)\t if the produce is sold through a commission  agent,<br \/>\nthe  commission agent shall realise the market fee from\t the<br \/>\npurchaser  and\tshall  be  liable to pay  the  same  to\t the<br \/>\ncommittee;\n<\/p>\n<p>    (ia)  if  the  produce  is sold by an  importer  to\t the<br \/>\npurchaser,  the\t importer shall realise the market fee\tfrom<br \/>\nthe  purchaser\tand shall be liable to pay the same  to\t the<br \/>\ncommittee;\n<\/p>\n<p>    (ii)  if  the produce is purchased directly by a  trader<br \/>\nfrom  a\t producer,  the trader shall be liable\tto  pay\t the<br \/>\nmarket fee to the committee;\n<\/p>\n<p>    (iii)  if  the  produce is purchased by  a\ttrader\tfrom<br \/>\nanother trader, the trader selling the produce shall realise<br \/>\nit  from the purchaser and shall be liable to pay the market<br \/>\nfee to the committee;  and<\/p>\n<p>    (iv)  in  any  other case of sale of such  produce,\t the<br \/>\npurchaser  shall  be  liable to pay the market\tfee  to\t the<br \/>\ncommittee.&#8221;\n<\/p>\n<p>    The\t Market\t Committee  called upon\t the  Appellants  to<br \/>\ncollect\t and  pay  the market fee on the  footing  that\t the<br \/>\nAppellants are traders who were selling the produce to other<br \/>\ntraders.   The\tAppellants claim that they are producers  of<br \/>\ncashew\tkernel and, therefore, sub-clause (ii) would  apply.<br \/>\nThe Appellants claim that if sub- clause (ii) does not apply<br \/>\nthen sub-clause (iv) would apply.  The question therefore is<br \/>\nwhether\t the  Appellants are producers or whether  they\t are<br \/>\ntraders.\n<\/p>\n<p>    As\tis  seen from the definition under Section  2(48)  a<br \/>\ntrader\tis  any person, who (a) buys  Notified\tAgricultural<br \/>\nProduce,  (b) either for himself or as agent of one or\tmore<br \/>\npersons,  (c)  for  the\t  purpose  of  selling,\t processing,<br \/>\nmanufacturing  or  any other purpose and (d) except for\t the<br \/>\npurpose\t of domestic consumption.  There is no dispute\tthat<br \/>\nthe  Appellants\t are traders when they purchase cashew\tnut,<br \/>\nwhich  is a Notified Agricultural Produce.  In such purchase<br \/>\ntransaction  they  are also importers.\tAs such traders\t and<br \/>\nimporters they have obtained a licence and are paying market<br \/>\nfee.  It is, however, submitted that even though they may be<br \/>\ntraders\/importers in the purchase transactions, they are not<br \/>\ntraders\t or  exporters when they sell cashew kernel.  It  is<br \/>\nsubmitted  that they are Producers of cashew kernel.  It  is<br \/>\nsubmitted  that\t in the Schedule to the said Act cashew\t nut<br \/>\nand  cashew  kernel are shown as two separate  and  distinct<br \/>\ncommodities.   It  is  submitted that the  State  Government<br \/>\naccepted the Judgment of the High Court of Kerala as correct<br \/>\nand  implemented  the  Judgment by  incorporating  the\tterm<br \/>\n&#8220;cashew\t kernel&#8221; as a separate items in the Schedule.  It is<br \/>\nsubmitted  that\t the Appellants are Producers under  Section<br \/>\n2(34)  as  the\tAppellants produce a  Notified\tAgricultural<br \/>\nProduce,  i.e.\t cashew kernel on their own  account,  under<br \/>\ntheir  personal supervision and by hired labour or  servants<br \/>\non  wages  paid\t in cash.  It is submitted  that  they\tfall<br \/>\nwithin\tthe  definition\t of  the term  &#8220;Producer&#8221;  and\tare,<br \/>\ntherefore,  governed by sub-clause (ii) of Section  65(2-A).<br \/>\nIt  is\tsubmitted  that in any event their  sale  of  cashew<br \/>\nkernel would not be a sale from a trader to a trader.  It is<br \/>\nsubmitted  that if sub-clause (ii) did not apply, they would<br \/>\nfall under sub-clause (iv) of Section 65(2-A).\n<\/p>\n<p>    Initially,\tMr.   Sarangan\tsubmitted   that  the\tterm<br \/>\n&#8220;Trader&#8221;  under Section 2(48) can only refer to a person who<br \/>\nbuys.\tHe initially submitted that the term &#8220;Trader&#8221; cannot<br \/>\napply  to a person who sells a Notified Agriculture Produce.<br \/>\nHowever\t to  be noted that under the definition mere  buying<br \/>\nwas  not  enough.  The buying had to be for the\t purpose  of<br \/>\nselling\t or  processing\t or manufacturing or for  any  other<br \/>\npurpose.   The\tbuying\thad to be for a purpose\t other\tthan<br \/>\ndomestic  consumption.\tWhen this was pointed out to him the<br \/>\nanswer\tsought\tto be given was that if a person bought\t and<br \/>\nsold  the same Notified Agricultural Produce, then he may be<br \/>\na trader, but if he bought one Notified Agricultural Produce<br \/>\nand  sold another Notified Agricultural Produce, then in the<br \/>\nsale transaction he would not be a trader.  It was submitted<br \/>\nthat  cashew  nut  and cashew kernel were two  separate\t and<br \/>\ndistinct  Notified  Agricultural Produce.  It was  submitted<br \/>\nthat  the  Appellants bought cashew nut.  It  was  submitted<br \/>\nthat  they  produced  cashew kernel and\t were  only  selling<br \/>\ncashew\tkernel.\t  It  was submitted that as  they  were\t not<br \/>\nselling\t the  Notified Agricultural Produce which  had\tbeen<br \/>\nbought they could not be termed as a &#8220;Trader&#8221;.\n<\/p>\n<p>    In\tsupport of the submission that cashew nut and cashew<br \/>\nkernel\tare two separate and distinct commodities,  reliance<br \/>\nwas  placed  upon the case of <a href=\"\/doc\/797997\/\">Vijayalaxmi Cashew Company  v.<br \/>\nDy.   Commercial  Tax Officer<\/a> reported in (1996) 1 SCC\t468.<br \/>\nIn  this  case, the Appellant therein was purchasing  cashew<br \/>\nnut, extracting cashew kernel and exporting cashew kernel to<br \/>\nforeign\t countries.   The  question was\t whether  they\twere<br \/>\nliable\tto sales tax under Section 5(3) of the Central Sales<br \/>\nTax  Act,  1956.  This Court negatived an argument that\t the<br \/>\npurchase  was  of the same goods which were exported.\tThis<br \/>\nCourt  held  that  cashew  nut and cashew  kernel  were\t two<br \/>\nseparate and distinct commodities.\n<\/p>\n<p>    Reliance  was also placed upon the case of Sita Devi  v.<br \/>\nState of Bihar reported in 1995 Supp.  (1) SCC 670.  In this<br \/>\ncase  the  question  was whether cattle could be  termed  as<br \/>\nAgricultural  Produce.\tThis Court held that even though  in<br \/>\ncommon\tparlance  cattle  may  not be considered  to  be  an<br \/>\nagricultural  produce  but  as it had been included  in\t the<br \/>\nSchedule, under &#8220;Animal Husbandry&#8221;, for the purposes of this<br \/>\nAct  it\t became\t an agricultural produce.  This\t Court\theld<br \/>\nthat, therefore, market fee could be levied on cattle bought<br \/>\nand  sold  in an market area.  Relying on this authority  it<br \/>\nwas  submitted\tthat to ascertain what was  an\tagricultural<br \/>\nproduce\t one  had  to  look to the items  specified  in\t the<br \/>\nSchedule  to the Act.  It was submitted that if two separate<br \/>\nitems  were specified in the Schedule to the Act, then those<br \/>\ntwo  had  to be treated as two separate and distinct  items.<br \/>\nHowever,  it may be noted that this case also lays down that<br \/>\nif an item, after it is taxed, is subjected to a process and<br \/>\nchanges\t its form, then it can again be subjected to  market<br \/>\nfee  in the different form.  The examples given in this case<br \/>\nare  that  even\t though\t market fee  is\t levied\t on  cattle,<br \/>\nsubsequently  milk, Ghee, butter which are obtained from the<br \/>\ncattle\tcould also be exigible to levy of market fee.\tThis<br \/>\ncase,  therefore, shows that by means of a process the\tvery<br \/>\nnature of the item may change.\n<\/p>\n<p>    Reliance was also placed upon the case of <a href=\"\/doc\/464\/\">State of Tamil<br \/>\nNadu  v.  Nellai Cotton Mills Ltd.<\/a>  reported in (1990) 2 SCC\n<\/p>\n<p>518.   In  this case it has been held that when an  Act\t has<br \/>\nbeen judicially interpreted, Courts may study the subsequent<br \/>\naction\tor  inaction  of  the legislature for  clues  as  to<br \/>\nlegislative    approval\t  or\t disapproval   of   judicial<br \/>\ninterpretation.\t It has been held that if the legislature by<br \/>\ntaking note of the Judgment amends the statute appropriately<br \/>\nby  not giving any different meaning from the view taken  by<br \/>\nthe  Court, with some justification, it can be said that the<br \/>\nlegislature  had  accepted expressly or by  implication\t the<br \/>\njudicial  interpretation.  It was submitted that by amending<br \/>\nthe  Schedule to include cashew kernel the State  Government<br \/>\nhad accepted the fact that cashew nut and cashew kernel were<br \/>\ntwo  separate and distinct commodities and now they would be<br \/>\nprecluded  from contending that these were not two  separate<br \/>\nand distinct commodities.\n<\/p>\n<p>    Reliance  was next placed upon the case of\t<a href=\"\/doc\/455128\/\">Commissioner<br \/>\nof  Income Tax v.  N.C.\t Budharaja &amp; Co.<\/a>  reported in (1993)<br \/>\n204  ITR  413.\tIt was submitted that the word\t&#8220;production&#8221;<br \/>\nhas  a\twider connotation than the word\t &#8220;manufacture&#8221;.\t  In<br \/>\nthis  case  it\tis  held that  every  manufacture  would  be<br \/>\ncharacterised  as production but every production would\t not<br \/>\namount\tto  manufacture.   It  is held that  when  the\tword<br \/>\n&#8220;production&#8221; or &#8220;produce&#8221; are used in juxtaposition with the<br \/>\nword  &#8220;manufacture&#8221;,  they may bringing into  existence\t new<br \/>\ngoods  by  a  process  which  may   or\tmay  not  amount  to<br \/>\nmanufacture.   It is held that these words also take in\t all<br \/>\nthe by-products, intermediate products and residual products<br \/>\nwhich emerge in the course of manufacture of goods.\n<\/p>\n<p>    Respondents\t do  not dispute that cashew nut and  cashew<br \/>\nkernel are two separate and distinct items\/commodities.\t The<br \/>\nRespondent&#8217;s  submission is that the Appellants continue  to<br \/>\nbe  a  trader  even  in the sale  transaction  as  they\t had<br \/>\nbought\/imported\t for purpose of processing and then selling.<br \/>\nRespondents  contend that merely because, by a process or by<br \/>\nmanufacture, a different item comes into being does not make<br \/>\nthe  processor or manufacturer a Producer.  The contend that<br \/>\na  &#8220;Producer&#8221;  is  one\twho produces  the  initial  Notified<br \/>\nAgricultural  Produce.\t We  are unable to  agree  with\t the<br \/>\nsubmissions  of\t Mr.   Sarangan.  As can be  seen  from\t the<br \/>\nPreamble  the  Act  is to provide for better  regulation  of<br \/>\nmarketing  of  agricultural  produce.  In  the\tAct  certain<br \/>\nexemptions have been given to Producer which exemptions have<br \/>\nnot  been  given  either  to Importer or an  Exporter  or  a<br \/>\nTrader.\t  These\t exemptions, therefore, have been  given  to<br \/>\nProducer because the Producer is the person who produces the<br \/>\nmain  agricultural produce.  The main agricultural  produce,<br \/>\nwhich  may be a Notified Agricultural Produce, could then be<br \/>\nconverted into various other Notified Agricultural Produce\/s<br \/>\nby  subjecting\tthe same to a process or  manufacture.\t The<br \/>\nperson who so processes or manufactures a different Notified<br \/>\nAgricultural  Produce would not be a Producer.\tTo be  noted<br \/>\nthat an importer imports or causes goods to be imported into<br \/>\nthe  market  area  for the purpose of  selling,\t processing,<br \/>\nmanufacturing or for any other purpose, except for one&#8217;s own<br \/>\ndomestic  consumption.\tThus, it is clear that a person, who<br \/>\nimports\t would\tnot be a Producer.  The import would be\t for<br \/>\npurpose of selling or processing or manufacturing or for any<br \/>\nother  purpose\texcept for one&#8217;s own  domestic\tconsumption.<br \/>\nSimilarly,  the\t term  &#8220;Exporter&#8221;  makes it  clear  that  an<br \/>\nexporter  is  not a Producer.  A trader is also is a  person<br \/>\nwho  buys  Notified Agricultural Produce for the purpose  of<br \/>\nselling\t or  processing\t or manufacturing or for  any  other<br \/>\npurpose except for the purpose of domestic consumption.\t The<br \/>\ndefinition  of\tthe  term  &#8220;Trader&#8221;  is\t not  a\t restrictive<br \/>\ndefinition.  It is not restricted to a person who only buys.<br \/>\nIf  a person buys for domestic or personal consumption, then<br \/>\nhe would not be a trader.  It is only when a person buys for<br \/>\nthe  purpose of selling or processing or manufacturing\tthat<br \/>\nhe would become a trader.  Thus a person may buy, process or<br \/>\nmanufacture   and   then  sell.\t   When\t he   processes\t  or<br \/>\nmanufactures  Notified\tAgricultural  Produce which  he\t had<br \/>\nbought,\t it  may  change its character\tand  become  another<br \/>\nNotified  Agricultural Produce.\t Thus, by way of examples, a<br \/>\nperson\tmay  buy  milk and through processes makes  it\tinto<br \/>\nbutter and\/or cheese or a person may buy hides and skins and<br \/>\nby  a process make it into leather.  However, merely because<br \/>\na  distinct and separate Notified Agricultural Produce comes<br \/>\ninto  existence\t does not mean that the person\twho  bought,<br \/>\nprocessed and sold ceases to be a Trader.  The term &#8220;Trader&#8221;<br \/>\nencumbrances  not  just\t the purchase  transaction  but\t the<br \/>\nentire\ttransaction  of purchase, processing,  manufacturing<br \/>\nand selling.\n<\/p>\n<p>    In\tthis  behalf the case of Himachal pradesh  Marketing<br \/>\nBoard v.  Shankar Trading Co.  Pvt.  Ltd.  reported in 1997)<br \/>\n2  SCC\t496,  is  relevant.    Under  the  Himachal  Pradesh<br \/>\nAgricultural  Produce  Markets\tAct,   1969,  licences\twere<br \/>\nrequired  to  be  taken\t for   purchase,  sale,\t storage  or<br \/>\nprocessing  of agricultural produce and market fee was\talso<br \/>\npayable.   Producers  or growers however did not  require  a<br \/>\nlicence and did not have to pay market fees.  The Respondent<br \/>\nCompany\t (therein)  was\t producing   &#8220;katha&#8221;,  a   specified<br \/>\nagricultural   produce.\t  They\tdid   this   by\t  processing<br \/>\nKhairwood.   They claimed (like the Appellants in this case)<br \/>\nthat  as  producers they did not need a licence\t and  market<br \/>\nfees  were  not payable by them.  This Court negatived\tthis<br \/>\ncontention  by\tholding that a person producing a  specified<br \/>\nagricultural  produce  by processing a natural product\tdoes<br \/>\nnot fulfil the requirement of being producer\/grower.  It was<br \/>\nheld  that the clause of the Act made it clear that only the<br \/>\nactual\tgrower\/producer of the natural agricultural  produce<br \/>\nwere  to be befitted.  Of course the definition of the terms<br \/>\nin  that  Act are different.  However in our view the  basic<br \/>\nprinciple is the same.\tIt applies to this case also.\n<\/p>\n<p>    We\talso  see  no substance in the\tsubmission  that  if<br \/>\nSection\t 65(2-A)(ii) did not apply, then Section 65(2-A)(iv)<br \/>\nwould  apply.  Section 65(2-A)(iv) is residuary clause.\t  It<br \/>\nwould  only apply if none of the other clauses applies.\t  As<br \/>\nit  is\tclear that the Appellants are Traders they  squarely<br \/>\nfall  within  Section 65(2-A)(iii).  In fact, they may\talso<br \/>\nfall within Section 65(2- A)(ia).  As they fall within these<br \/>\ntwo  clauses  there is no question of the  residuary  clause<br \/>\napplying.\n<\/p>\n<p>    Under  these  circumstances, we see no infirmity in\t the<br \/>\nJudgment  of the High Court.  We see no reason to interfere.<br \/>\nThe  Appeals  stand dismissed.\tThere will, however,  be  no<br \/>\nOrder as to costs.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India G. Giridhar Prabhu &amp; Ors vs Agricultural Produce Market &#8230; on 2 March, 2001 Author: S N Variava Bench: V.N. Khare, S.N. Variava CASE NO.: Appeal (civil) 3982-3984 of 1999 PETITIONER: G. GIRIDHAR PRABHU &amp; ORS. Vs. RESPONDENT: AGRICULTURAL PRODUCE MARKET COMMITTEE DATE OF JUDGMENT: 02\/03\/2001 BENCH: V.N. Khare &amp; S.N. [&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-148993","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>G. 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