{"id":234607,"date":"2008-10-18T00:00:00","date_gmt":"2008-10-17T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/mohan-jute-mills-ltd-vs-state-of-chhattisgarh-on-18-october-2008"},"modified":"2017-04-19T04:28:29","modified_gmt":"2017-04-18T22:58:29","slug":"mohan-jute-mills-ltd-vs-state-of-chhattisgarh-on-18-october-2008","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/mohan-jute-mills-ltd-vs-state-of-chhattisgarh-on-18-october-2008","title":{"rendered":"Mohan Jute Mills Ltd vs State Of Chhattisgarh on 18 October, 2008"},"content":{"rendered":"<div class=\"docsource_main\">Chattisgarh High Court<\/div>\n<div class=\"doc_title\">Mohan Jute Mills Ltd vs State Of Chhattisgarh on 18 October, 2008<\/div>\n<pre>       \n\n  \n\n  \n\n \n \n            HIGH COURT OF CHATTISGARH AT BILASPUR       \n\n\n             WRIT PETITION C   No. 92 of 2008\n\n\n\n                   Mohan   Jute   Mills  Ltd.\n                                     ...Petitioners\n\n                        VERSUS\n\n              1.  State  of Chhattisgarh\n\n               2.  Chhattisgarh Rajya Krishi Vipanan (Mandi) Board, Raipur.\n\n               3.  Krishi   Upaj   Mandi   Samiti,Jashpur\n\n               4.  Krishi Upaj Mandi Samiti,Raigarh.\n\n               5.  Collector,  Raigarh,   District Raigarh, C.G.\n\n               6.   Collector, Jashpurnagar, C.G.\n\n\n\n!              Shri Abhishek Sinha, Advocate for the petitioner\n\n\n\n^             Shri Shashank Thakur, Panel Lawyer for the State\/respondent<\/pre>\n<p>              No. 1, 5 and 6.\n<\/p>\n<p>              Shri Y.S.Thakur, Deputy Advocate General for the respondent<br \/>\n              No. 2 to 4.<\/p>\n<pre>\n\n\n\n             Honble Shri Satish K Agnihotri, J\n\n\n             Dated: 18\/10\/2008\n\n\n\n\n:             Judgement\n\n\n\n\n\n<\/pre>\n<p>           WRIT PETITION UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA        <\/p>\n<p>            (Passed on 18th day of  October, 2008)<\/p>\n<p>  1.   The petitioner challenges the levying and recovery  of<\/p>\n<p>       market fee by the respondent No. 2, 3 and 4 on the jute<\/p>\n<p>       brought  by the petitioner within the market area  for<\/p>\n<p>       processing and manufacturing of gunny bags.<\/p>\n<p>  2.   The  brief facts, in nutshell are that the petitioner,<\/p>\n<p>       who is the manufacturer of gunny bags, purchases jute as raw<\/p>\n<p>       materials from other states namely state of West Bengal,<\/p>\n<p>       Bihar, Jharkhand and Orrisa. The jute brought within the<\/p>\n<p>       market area is subjected to processing and production of<\/p>\n<p>       gunny bags.\n<\/p>\n<p>  3.   Shri Abhishek Sinha, learned counsel appearing for the<\/p>\n<p>       petitioner would submit that the market fee is not payable on<\/p>\n<p>       raw materials which are brought within the market area for<\/p>\n<p>       manufacturing  gunny bags for the purpose of making the same<\/p>\n<p>       marketable. Shri Sinha would further submit that the nature<\/p>\n<p>       of the jute comes to an end when the jute are processed and<\/p>\n<p>       used for the purpose of manufacture of gunny bags. Shri Sinha<\/p>\n<p>       relies on a decision of the Hon&#8217;ble Supreme Court in the<\/p>\n<p>       matter of <a href=\"\/doc\/1468385\/\">Orient Paper &amp; Industries Ltd. v. State of M.P. and<\/p>\n<p>       Others1<\/a> in support of his contention that when the raw<\/p>\n<p>       material  is used for processing and the end  user  is<\/p>\n<p>       manufacturer, levy of market fee is not attracted.<\/p>\n<p>  4.   Shri Y.S.Thakur, learned Deputy Advocate General,  per<\/p>\n<p>       contra would submit that the market fee is leviable fee on<\/p>\n<p>       the raw materials. In the present case, though the nature of<\/p>\n<p>       the jute changes after manufacturing of gunny bags, but the<\/p>\n<p>       basic material of the gunny bags remains the same i.e. jute.<\/p>\n<p>       Thus,  market fee is leviable under the provisions  of<\/p>\n<p>       Chhattisgarh Krishi Upaj Mandi Adhiniyam, 1972 (for short<\/p>\n<p>       `the Act, 1972).\n<\/p>\n<p>  5.   I have heard learned counsel appearing for the parties,<\/p>\n<p>       perused the pleadings and documents appended thereto. It is<\/p>\n<p>       evident that the power to levy market fee is provided under<\/p>\n<p>       section 19 of the Act, 1972, which reads as under:<\/p>\n<blockquote><p>              &#8220;19.  Power  to  levy  market  fee.-[(1)  Every<br \/>\n              market Committee shall levy market fee &#8211;<\/p>\n<p>            (i)  on the sale of notified agricultural produce whether<br \/>\n               brought from within the State or from outside the State into<br \/>\n               the market area; and\n<\/p>\n<p>(ii) on the notified agriculture produce whether brought from<br \/>\nwithin the State or from outside the State into the market<br \/>\nareas and used for processing;\n<\/p>\n<blockquote><p>                         at such rates as may be fixed by the<br \/>\n              State  Government from time to time subject  to<br \/>\n              a  minimum rate of fifty paise and a maximum of<br \/>\n              two  rupees for every one hundred rupees of the<br \/>\n              price in the manner prescribed:\n<\/p><\/blockquote>\n<blockquote><p>                         Provided  that  no Market  Committee<br \/>\n              other  than  the one in whose market  area  the<br \/>\n              notified  agricultural produce is  brought  for<br \/>\n              sale  or  processing  by  an  agriculturist  or<br \/>\n              trader, as the case may be, for the first  time<br \/>\n              shall levy such market fee.]<br \/>\n              (2)   The market fees shall be payable  by  the<br \/>\n              buyer  of the notified agricultural produce  an<br \/>\n              shall  not  be deducted from the price  payable<br \/>\n              to the seller:\n<\/p><\/blockquote>\n<blockquote><p>                         [Provided that where the buyer of  a<br \/>\n              notified   agricultural   produce   cannot   be<br \/>\n              identified,  all the fees shall be  payable  by<br \/>\n              the  persons  who may have sold or brought  the<br \/>\n              produce for sale in the market area:\n<\/p><\/blockquote>\n<blockquote><p>                         Provided  further that  in  case  of<br \/>\n              commercial transaction between traders  in  the<br \/>\n              market   area,   the  market  fees   shall   be<br \/>\n              collected  shall be collected and paid  by  the<br \/>\n              seller]:\n<\/p><\/blockquote>\n<blockquote><p>                         [Provided further also that no  fees<br \/>\n              shall  be levied upto 31st March, 1990 on  such<br \/>\n              agricultural  produce as may  be  specified  by<br \/>\n              the  State Government by notification  in  this<br \/>\n              behalf  if  such produce has been sold  outside<br \/>\n              the  market  yard  or  sub-market  yard  by  an<br \/>\n              agriculturist  to  a  co-operative  society  of<br \/>\n              which he is a member.]<br \/>\n                          [Provided   also   that   for   the<br \/>\n              Agriculture Produce brought in the market  area<br \/>\n              for  commercial  transaction or for  processing<br \/>\n              the  market fee shall be deposited by the buyer<br \/>\n              or  processor,  as  the case  may  be,  in  the<br \/>\n              market committee office within [fourteen]  days<br \/>\n              if  the  buyer  or processor has not  submitted<br \/>\n              the  permit  issued  under sub-section  (6)  of<br \/>\n              Section 19].\n<\/p><\/blockquote>\n<blockquote><p>                      xxx       xxx       xxx&#8221;\n<\/p><\/blockquote>\n<blockquote><p>  6.   The Hon&#8217;ble Supreme Court in the matter of Orient Paper<\/p>\n<p>       &amp; Industries Ltd. (supra), has considered the power to levy<\/p>\n<p>       market fee as prescribed under section 19 of this very Act.\n<\/p><\/blockquote>\n<blockquote><p>       Their Lordships, after having defined manufacture, came to<\/p>\n<p>       the conclusion that market fee is not payable if the raw<\/p>\n<p>       material is used for processing, where the end user is<\/p>\n<p>       manufacturer. In the case of Orient Paper &amp; Industries<\/p>\n<p>       Ltd.(supra), it was observed as under:\n<\/p><\/blockquote>\n<blockquote><p>           &#8220;17.  `Manufacture&#8217;  is  a  transformation  of  an<br \/>\n           article, which is commercially different from  the<br \/>\n           one,   which   is   converted.  The   essence   of<br \/>\n           manufacture  is  the  change  of  one  object   to<br \/>\n           another  for  the purpose of making it marketable.<br \/>\n           The  essential  point thus is that in  manufacture<br \/>\n           something  is  brought into  existence,  which  is<br \/>\n           different  from that, which originally existed  in<br \/>\n           the  sense that the thing produced is by itself  a<br \/>\n           commercially  different commodity whereas  in  the<br \/>\n           case  of processing it is not necessary to produce<br \/>\n           a   commercially   different   article.<a href=\"\/doc\/625579\/\">(See   M\/s.<br \/>\n           Saraswati Sugar Mills and others v. Haryana  State<br \/>\n           Board and others<\/a> 1992 (1) SCC 418).\n<\/p><\/blockquote>\n<blockquote><p>           22.  Had it been only that the goods notified  are<br \/>\n           brought into the market area to be covered by  the<br \/>\n           second  category then the stand of the respondents<br \/>\n           would   have  been  acceptable.  But  the  further<br \/>\n           condition  it must be `used for processing&#8217;  shows<br \/>\n           that  the  emphasis is on end-user. In  this  case<br \/>\n           that   makes   the   difference.  Therefore,   the<br \/>\n           appellant  is  correct in its stand that  levy  on<br \/>\n           the  notified  agriculture produce  being  brought<br \/>\n           within  market area where end-user is  manufacture<br \/>\n           does not attract levy of market fee.&#8221;\n<\/p><\/blockquote>\n<\/blockquote>\n<blockquote><p>  7.   In view of the foregoing, the question of law involved<\/p>\n<p>       in the instant petition is no longer res nova. The facts<\/p>\n<p>       involved in the instant case are  identical to that of in the<\/p>\n<p>       case of Orient Paper &amp; Industries Ltd. (supra).\n<\/p><\/blockquote>\n<p>  8.   Thus,  the petition is allowed, accordingly. No  order<\/p>\n<p>       asto costs.\n<\/p>\n<\/p>\n<p>                                                JUDGE<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Chattisgarh High Court Mohan Jute Mills Ltd vs State Of Chhattisgarh on 18 October, 2008 HIGH COURT OF CHATTISGARH AT BILASPUR WRIT PETITION C No. 92 of 2008 Mohan Jute Mills Ltd. &#8230;Petitioners VERSUS 1. State of Chhattisgarh 2. Chhattisgarh Rajya Krishi Vipanan (Mandi) Board, Raipur. 3. Krishi Upaj Mandi Samiti,Jashpur 4. Krishi Upaj Mandi [&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":[12,8],"tags":[],"class_list":["post-234607","post","type-post","status-publish","format-standard","hentry","category-chattisgarh-high-court","category-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Mohan Jute Mills Ltd vs State Of Chhattisgarh on 18 October, 2008 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/mohan-jute-mills-ltd-vs-state-of-chhattisgarh-on-18-october-2008\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Mohan Jute Mills Ltd vs State Of Chhattisgarh on 18 October, 2008 - Free Judgements of Supreme Court &amp; 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