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Showing contexts for: processing, market fee in Itc Limited vs State Of Karnataka And Ors. on 8 February, 2005Matching Fragments
7. However, in respect of the petitioner in W.P. Nos. 31351 to 31354 of 2004, during the pendency of this petition before this Court, the APMC, Yeshwanthpur, Bangalore, has issued a demand notice dated 25-1-2005, produced at Annexure-D along with the application filed under Section 151 of the CPC, etc., on 3-2-2005, to the effect that the petitioner is liable to pay such market fee on account of the fact that certain agricultural produces which this petitioner had imported from outside the State to the market area has undergone certain processing within the market area and as such this petitioner is liable to pay market fee for having processed such quantity of notified agricultural produces within the market area and in this demand, a reference is made not only to the earlier show-cause notices, but also a circular dated 8-7-2004, issued by the APMC, which in turn refers to an earlier circular dated 18-5-2004, issued by the Director of Agricultural Marketing Board.
46. The provisions of Section 65 of the Act before and after the amending Act 22 of 2004 reads as under:
Before After
65. Levy of Market fees. -- 65. Levy of Market fees- --
(1) xx x (1) x x x
(2) The Market Committee shall (2) The Market Committee shall
levy and collect market fees from levy and collect market fees from
every buyer in respect of every buyer in respect of
agricultural produce bought by agricultural produce bought by
such buyer in the market area, at such buyer in the market area, at
such rate as may be specified on such rate as may be specified on
the bye-laws which shall not be the bye-laws which shall not be
more than two rupees per one more than two rupees per one
hundred rupees of the value of hundred rupees of the value of
such produce bought except in case such produce bought except in case
of livestock where the market fee of livestock where the market fee
shall not be more than five rupees shall not be more than five rupees
per head of cattle other than sheep per head of cattle other than sheep
or goat, and in the case of sheep or or goat, and in the case of sheep or
goat such fee shall not be more goat such fee shall not be more
than one rupee per head in such than one rupee per head in such
manner and at such times as may manner and at such times as may
be specified in the bye-laws: be specified in the bye-laws:
Provided that in the case of any Provided that in the case of any
co-operative society doing business co-operative society doing business
in agricultural produce within a in agricultural produce within a
market yard, market fee shall be market yard, market fee shall be
levied and collected at the rate of levied and collected at the rate of
eighty per cent of the market fee eighty per cent of the market fee
payable under this Act: payable under this Act:
(2-A) The market fee payable Provided further that, if on any
under this Section shall be realised agricultural produce market fee has
as follows, namely. -- already been levied and collected
(i) if the produce is sold through a under Sub-section (2) in any market
agent shall realise the market fee area within the State and such
from the purchaser and shall be agricultural produce is processed
liable to pay the same to the and sold in any other market area
committee; within the State or exported outside
the State it shall be exempted from
the levy of market fee.
(ia) if the produce is sold by an Explanation. -- Nothing in this
importer to the purchaser, the proviso shall apply to. --
importer shall realise the market (i) any processed agricultural
fee from the purchaser and shall be produce imported from outside the
liable to pay the same to the State and sold in any market area
Committee; within the State; or
(ii) if the produce is purchased (ii) any agricultural produce
directly by a trader from a imported or caused of be imported
producer, the trader shall be liable by any person either on his own
to pay the market fee to the account or as an agent for another
Committee; person, from outside the State into
(iii) if the produce is purchased by any market area within the State
a trader from another trader, the for the purpose of processing or
trader selling the produce shall manufacturing except for one's own
realise it from the purchaser and domestic consumption.
shall be liable to pay the market
fee to the Committee'; and
(iv) in any other case of sale of such (2-A) The market fee payable
produce, the purchaser shall be under this section shall be realised
liable to pay the market fee to the as follows, namely. --
committee.
(2-B) The market fee payable (i) if the produce is sold through a
under Clauses (i), (ia), (ii) or (iii) of commission agent, the commission
Sub-section (2-A) shall be paid to agent shall realise the market fee
the Market Committee within such from the purchaser and shall be
time as may be specified in the liable to pay the same to the
bye-laws. Committee;
(3) Notwithstanding anything (ia) if the produce is sold by an
contained in this Act, if any importer to the purchaser, the
Market Committee in the State importer shall realise the market
has already levied and collected fee from the purchaser and shall be
market fee under Sub-section (2) liable to pay the same to the
from a buyer in respect of any committee;
agricultural produce as may be (ii) if the produce is purchased
specified by the State Government directly by a trader from a
by notification, no market fee shall producer, the trader shall be liable
be levied and collected again in to pay the market fee to the
respect of such agricultural Committee;
produce by any other Market
Committee in the State during (iii) if the produce is purchased by
such crop season as may be a trader from another trader, the
specified in such notification, trader selling the produce shall
subject to production of such proof realise it from the purchaser and
as may be prescribed for having shall be liable to pay the market
collected the market fee. fee to the Committee; and
(iv) in any other case of sale of such
produce, the purchaser shall be
liable to pay the market fee to the
committee.
(2-B) The market fee payable
under Clauses (i), (ia),(ii) or (iii) of
Sub-section (2-A) shall be paid to
the Market Committee within such
time as may be specified in the
bye-laws.
(3) Notwithstanding anything
contained in this Act, if any
Market Committee in the State
has already levied and collected
market fee under Sub-section (2)
from a buyer in respect of any
agricultural produce as may be
specified by the State Government
by notification, no market fee shall
be levied and collected again in
respect of such agricultural
produce by any other Market
Committee in the State during
such crop season as may be
specified in such notification,
subject to production of such proof
as may be prescribed for having
collected the market fee.
(1) Exemption from the levy of market fee on agricultural produce on which market fee has already been levied and collected in any market area within the State and such agricultural produce is processed and sold in any other market area within the State or exported outside the State.
Hence the Bill".
A cursory reading of a Statement of Objects and Reasons indicate that the bill is introduced for the purpose of amending the Act to ensure that encouragement is given to Agro Processing Sector in the State which in turn has the effect of value addition to the agricultural produce, enhancing their marketability to the benefit of the farmers who can on such favourable marketing facilities and demand get a better price for their products and for the purpose of attracting investments from private sectors to the Agro Processing Sector which makes the agricultural marketing operations more effective. It is to give effect to such objects, amendment has been introduced. While the reading of the Objects and Reasons definitely indicates that the idea is to give encouragement for setting up of more and more processing units by attracting investments from private sectors and the provision is one for giving such incentive, what is actually contended and appears to have understood for implementation is quite contrary. The object appears to be to give an incentive for increasing the number of processing units and therefore there should be a concession extended. The concession extended is by providing an exemption from levy of market fee in respect of processed notified agricultural produces also subject to the condition that prior to such processing the base products had been subjected to levy of market fee once within any market area in the State. It is a provision for extending a benefit to be notified agricultural produce otherwise which could be subjected to levy of market fee. That is achieved by providing for the second proviso. However, while providing for such a benefit or extending such concession, it is sought to be restricted to only such notified agricultural produces which are grown within the State and the object of the amended provisions as indicated in the Explanation (ii) is not to extend such a benefit in respect of notified processed agricultural produces brought from outside the State and which are imported to any market area. This is on the face of it what appears to be on a reading of the provisions.
54. I have already indicated that though it was sought to be argued on behalf of the respondents that the provisions of the amending Section 3 of the Act 22 of 2004 achieves the object of levy of market fee on the activity of processing an imported notified agricultural produces, unfortunately, this is not so in the actual language of these provisions and it is not even so as per the statement of objects and reasons appended to the Bill at the time of introduction of this legislation in the Assembly. While, the purpose and reason for introducing an amendment may be perhaps was to rope in such activities and to augment revenue in favour of the Market Committees, neither the language of the object and reasons spell it out nor has it been put in that manner in the statute. While providing or not so providing in the statement of objects and reasons in itself would not have been of much consequence in the absence of the very statute having provided for it, by no stretch of imagination or on applying any accepted norm of interpretation can it be understood or described that the amended provision has the effect of subjecting to levy of payment of market fee, a notified processed agricultural produce if it is imported from outside the State and subjected to processing activity in the State. It is not so in the language of the section.