{"id":64985,"date":"2009-09-01T00:00:00","date_gmt":"2009-08-31T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/c-kandasamy-vs-n-chidambaram-on-1-september-2009"},"modified":"2015-05-07T12:23:20","modified_gmt":"2015-05-07T06:53:20","slug":"c-kandasamy-vs-n-chidambaram-on-1-september-2009","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/c-kandasamy-vs-n-chidambaram-on-1-september-2009","title":{"rendered":"C.Kandasamy vs N.Chidambaram on 1 September, 2009"},"content":{"rendered":"<div class=\"docsource_main\">Madras High Court<\/div>\n<div class=\"doc_title\">C.Kandasamy vs N.Chidambaram on 1 September, 2009<\/div>\n<pre>       \n\n  \n\n  \n\n \n \n BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT\n\nDATED : 01\/09\/2009\n\nCORAM\nTHE HONOURABLE MR.JUSTICE G.M.AKBAR ALI\n\nCRL.O.P.(MD)No.1436 of 2007\nCRL.O.P.(MD)Nos.1437, 1438, 8187, 8237,\n8243, 8244, of 2007\nand\nM.P.(MD)Nos.2, 2, 2, 2, 2, 2 &amp; of 2007\n\nC.Kandasamy\nSivaraj Spinning Mills (P) Ltd.,\nThadicombu - 624 709\nDindigul (Taluk)\nDistrict.    \t\t\t      ... Petitioner in\n                                          Crl.O.P.No.1436\/07\n\nVs\n\nN.Chidambaram\nThe Superintendent\nRegulated Market\nBegambur (Post)\nDindigul Market Committee\nDindigul - 2.\t\t\t     ... Respondent in<\/pre>\n<p>                                         Crl.O.P.No.1436\/07<\/p>\n<p>PRAYER CRL.O.P.1436\/07<\/p>\n<p>Criminal Original Petition filed under Section 482 of<br \/>\nthe Criminal Procedure Code, to call for the records pertaining to the Calender<br \/>\nCase in C.C.No.813 of 2006, pending on the file of Judicial Magistrate No.II,<br \/>\nDindigul and quash the same.\n<\/p>\n<p>!For Petitioners &#8230;  Mr.S.D.Venkateshwaran<br \/>\n^For Respondent  &#8230;  Mr.R.Janakiramulu, SGP<\/p>\n<p>:COMMON ORDER<\/p>\n<p>\tThese petitions are filed under Section 482 of Cr.P.C., to call for the<br \/>\nrecords pertaining to the Calender Cases in C.C.Nos.813, 815, 814, of 2006,<br \/>\nrespectively in Crl.O.P.Nos.1436, 1437, 1438 of 2007, pending on the file of the<br \/>\nlearned Judicial Magistrate No.II, Dindigul, and Calender Cases in<br \/>\nC.C.Nos.84,83,85,86 of 2007 respectively in Crl.O.P.(MD)Nos.8187, 8237, 8243,<br \/>\n8244, of 2007, pending on the file of the learned Judicial Munsif-cum-Judicial<br \/>\nMagistrate, Vedasundur, and to quash the same.\n<\/p>\n<p>\t2.The brief facts of the case is as follows:-\n<\/p>\n<p>\tThe petitioners are the Spinning Mills located in and around Dindigul<br \/>\nDistrict.  They are registered and licensed under the Tamil Nadu Agricultural<br \/>\nProduce Marketing Regulation Act, 1987.  The petitioners are producing cotton<br \/>\nyarn in the above said mills.  The respondent is the Dindigul Market Committee,<br \/>\nwhich is a Statutory Body under the  Tamil Nadu Agricultural Produce Marketing<br \/>\nRegulation Act, 1987.  The petitioners are granted licence and they are<br \/>\nperiodically submitted the returns as per rules. The petitioners&#8217; Mills are<br \/>\nproducing cotton yarn and the waste cotton generated during the process of<br \/>\nspinning the yarn, when sold outside is subject to levy of marketing fees at the<br \/>\nrate of not less than one rupee for every hundred rupees at the aggregated<br \/>\namount.  The petitioners are remitting the marketing fee in the case of sale of<br \/>\nwaste cotton as per the provision of the Act. Instead of selling the entire<br \/>\nwaste cotton in the outside market, the petitioners have been utilizing some<br \/>\nquantity of the waste cotton for further conversion into Open End Yarn (OE yarn)<br \/>\nfrom the Open End Spinning Mills, on job work basis.  Such waste cotton,<br \/>\nconverted into OE yarn will be returned back in the form of yarn to the<br \/>\npetitioners&#8217; Mills.  The respondent have erroneously considered this conversion<br \/>\nand accordingly issued notice to the petitioners to remit the market fee on the<br \/>\nvalue of the quantity of waste cotton sent for conversion process.  The<br \/>\nrespondent had initiated criminal prosecution by preparing complaints and the<br \/>\nlearned Magistrate has taken on file for an offence under Sections 48(1)(a)(c)<br \/>\nof the Tamil Nadu Agricultural Produce Marketing Regulation Act, 1987.  There is<br \/>\nno justification for invoking section 48(1)(a) and (c) of the above said rules<br \/>\nand therefore, the petitioners prayed to call for the records pertaining to all<br \/>\nthe case pending in the Judicial Magistrate Courts and to quash the same.  The<br \/>\nfollowing table would reveal the case details.\n<\/p>\n<p>\t3.Heard the learned counsel appearing for the petitioners as well as the<br \/>\nlearned Special Government Pleader appearing for the respondent.\n<\/p>\n<p>\t4.The learned counsel for the petitioners would submit that the waste<br \/>\ncotton generated during the production of cotton yarn if sold outside market,<br \/>\nthe respondent collects fee of Rs.1 for every 100 rupees.  The learned counsel<br \/>\npointed out that when the waste cotton is utilized for further conversion in to<br \/>\nopen end yarn from the open end spinning mill on job work basis,  the question<br \/>\nof sale does not arise and it does not attract levy of Rs.1 for ever Rs.100\/-.<br \/>\nThe petitioners have been regularly filing returns and have been paying the levy<br \/>\nbut, the respondents have subjecting the above said utilization of waste cotton<br \/>\nfor further conversion as outside sale and it is erroneous.  The learned counsel<br \/>\npointed out that the waste cotton is  converted into low quality yarn and is<br \/>\nreturned back to the Mills and therefore, it would not attract levy.  The<br \/>\nlearned counsel pointed out that the petitioners are filing return in Form XX on<br \/>\nthe job work basis and not for sale.\n<\/p>\n<p>\t5.Section 24 of the Tamil Nadu Agricultural Produce Marketing<br \/>\n(Regulation)Act, 1987 deals with levy of fee by market committee. Section 48<br \/>\ndeals with penalties and sub section (a) deals with evading payment of any fee<br \/>\ndue under the Act and sub Section (c) deals with furnishing false information.<br \/>\nRules 33(1) deals with levy of fee shall be Rs.1\/- (Rupee one only) for every<br \/>\nhundred rupees of the aggregate amount of the notified agricultural produce,<br \/>\nwhich is bought or sold in the notified market area.  Sub clause (2) provides<br \/>\nthe fee referred to in sub-rule(1) shall be payable only in respect of first<br \/>\npurchase or sale.\n<\/p>\n<p>\t6.The case of the petitioners in all these petitions is that there is no<br \/>\nsale of waste cotton and it is processed on a job work basis and returned back<br \/>\nto the  Mills as open end yarn.  The petitioners have also filed a delivery<br \/>\nnotes under Form XX, which would show not for sale and returned back after<br \/>\nconversion.  A chalan under Rule 12(b) of the Central Excise Rules, 2002  is<br \/>\nalso filed by the open end division i.e., the mills which are doing the job<br \/>\nwork. It is  filed to show that the waste cotton was returned back after<br \/>\nconversion.  The delivery chalan by the said open end division is also filed to<br \/>\nshow that the open end cotton yard was delivered to the petitioners after<br \/>\nconversion.  The petitioners have also filed Form IX for monthly transactions.<br \/>\nHowever, the respondent has sent a notice to the petitioners stating that the<br \/>\npetitioners&#8217; mill have to pay the fee on the waste cotton, which was sent for<br \/>\njob work and they have initiated such proceedings in various case before the<br \/>\nJudicial Magistrate Court.\n<\/p>\n<p>\t7.The following are the details of the case pending and the fees payable:<\/p>\n<pre>\n\nS.NO      CRL.OP.NOS        PETITIONERS \/ ACCUSED    CC.NOS.     FEE PENDING (In Rs.)\n\n\n\n01         1436\/2007          C.Kandasamy           813\/2006           -\n\n\n\n\n02         1437\/2007          V.Dhanalakshmi        815\/2006        57,664\/-\n\n\n\n\n03         1438\/2008         P.S.Velusamy           814\/2006        1,03,373\/-\n\n\n\n\n04         8187\/2007         C.Kandasamy            84\/2007         52,315\/-\n\n\n\n\n05         8237\/2007         V.Dhanalakshmi         83\/2007         34,284\/-\n\n\n\n\n06         8243\/2007         K.Indira               85\/2007         94,564\/-\n\n\n\n\n07         8244\/2007         P.S.Velusamy          86\/2007          1,08,965\/-\n\n\n\n\n\n<\/pre>\n<p>\t8.Under Section 24(1), of the Tamil Nadu Agricultural Produce Marketing<br \/>\nRegulation Act, 1987, the market committee shall levy a fee on any notified<br \/>\nagricultural produce bought or sold in the notified market area.  Under Rule 33,<br \/>\nthe fee on a notified agricultural produce leviable under sub-section (1) of<br \/>\nsection 24 of the Act, shall be Re.1 (Rupee one only) for every hundred rupees<br \/>\nof the aggregate amount of the notified agricultural produce, which is bought or<br \/>\nsold in the notified market area.\n<\/p>\n<p>\t9.If the waste cotton is bought or sold in the notified area, it would be<br \/>\nsubjected for levy as prescribed.  The burden is on the petitioners to prove<br \/>\nthat the waste cotton sent for conversion is not bought or sold and it is not<br \/>\nsubjected to for levy.  The petitioners have produced the Delivery Notes under<br \/>\nForm XX and delivery chalans and a monthly returns to show that the waste cotton<br \/>\nhas been sent for conversion into open end yarn and they have received back<br \/>\nafter conversion and in my considered view, this transaction will not come under<br \/>\nthe definition &#8220;the produce bought or sold&#8221; and therefore, will not attract levy<br \/>\nof fee.\n<\/p>\n<p>\t10.The levy payable is only on the produce bought or sold in the notified<br \/>\narea. If the waste cotton is sent out of the premises of the mills for a<br \/>\nconversion on job basis into open end yarn and is received back after such<br \/>\nconversion, there is no sale or purchase to attract the levy under Section<br \/>\n24(1), of the Tamil Nadu Agricultural Produce Marketing Regulation Act, 1987,.\n<\/p>\n<p>\t11.Therefore, in the light of the foregoing discussion, I am of the<br \/>\nconsidered view that the transaction of waste cotton being subjected for<br \/>\nconversion on a job work basis with different mill and returned back to the<br \/>\nMills as open end yard and there is no actual sale or purchase took place during<br \/>\nthe transaction to attract levy.  Therefore, the prosecution launched by the<br \/>\nrespondent is without any basis and it is abuse of process of law.  Therefore,<br \/>\nto meet the ends of justice, it is fit case to be interfered with.\n<\/p>\n<p>\t12.In the result, the petitions are allowed and the Calender Cases in<br \/>\nC.C.Nos.813, 815, 814, of 2006, respectively in Crl.O.P.Nos.1436, 1437, 1438 of<br \/>\n2007, pending on the file of the learned Judicial Magistrate No.II, Dindigul,<br \/>\nand Calender Cases in C.C.Nos.84,83,85,86 of 2007 respectively in<br \/>\nCrl.O.P.(MD)Nos.8187, 8237, 8243, 8244, of 2007, pending on the file of the<br \/>\nlearned Judicial Munsif-cum-Judicial Magistrate, Vedasundur, are quashed.<br \/>\nConsequently, connected miscellaneous petitions are closed.\n<\/p>\n<p>MPK<\/p>\n<p>To<\/p>\n<p>1.The Superintendent<br \/>\n  Regulated Market<br \/>\n  Begambur (Post)<br \/>\n  Dindigul Market Committee<br \/>\n  Dindigul &#8211; 2.\n<\/p>\n<p>2.The Judicial Magistrate No.II,<br \/>\n  Dindigul.\n<\/p>\n<p>3.The District Munsif-cum-Judicial Magistrate,<br \/>\n  Vedasandur.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Madras High Court C.Kandasamy vs N.Chidambaram on 1 September, 2009 BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED : 01\/09\/2009 CORAM THE HONOURABLE MR.JUSTICE G.M.AKBAR ALI CRL.O.P.(MD)No.1436 of 2007 CRL.O.P.(MD)Nos.1437, 1438, 8187, 8237, 8243, 8244, of 2007 and M.P.(MD)Nos.2, 2, 2, 2, 2, 2 &amp; of 2007 C.Kandasamy Sivaraj Spinning Mills (P) Ltd., Thadicombu [&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":[8,13],"tags":[],"class_list":["post-64985","post","type-post","status-publish","format-standard","hentry","category-high-court","category-madras-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>C.Kandasamy vs N.Chidambaram on 1 September, 2009 - 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\/c-kandasamy-vs-n-chidambaram-on-1-september-2009\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"C.Kandasamy vs N.Chidambaram on 1 September, 2009 - Free Judgements of Supreme Court &amp; 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