HARINAGAR SUGAR MILLS LIMITED Vs. STATE OF BIHAR

JUDGEMENT

(1.) The appellant, in the above noted Civil Appeals Nos. 8274-8292 of 2001 is a 'Company' registered under the Indian Companies Act, 1956 and has a sugar factory situate in Harinagar, District West Champaran in the State of Bihar. For the purposes of manufacture of sugar, the appellant had been purchasing sugarcane and the sugar produced would be sold as per provisions under the law. The molasses collected as one of the by-products was also sold by the appellant. By means of a Notification dated 21-7-1976 issued under Bihar Agricultural Produce Markets Act, 1960 (for short 'the Act'), Ram Nagar Agricultural Produce Market Area was constituted. A licence under the provisions of the Act was issued by the concerned Market Committee viz. the Bagha Agricultural Produce Marketing Committee to the appellant as a result of which the transactions of purchase of sugarcane and sale of sugar and molasses became subject to payment of market fee. The connected Civil Appeal Nos. 8293-8311 of 2001 have been filed by the Bagha Agricultural Produce Marketing Committee aggrieved by the part of the judgment of the High Court holding that they would not be entitled to recover the balance two-third amount of market fee which remained unpaid. For the sake of convenience in this judgment wherever we have referred "the appellant," it is referred for the appellant in Civil Appeals Nos. 8274-8292 of 2001, namely Harinagar Sugar Mills Ltd.

(2.) The appellant filed a suit in the Court of the Subordinate Judge, Bettiah challenging the levy of market fee raising different grounds. By means of an interim injunction the Market Committee was restrained from realizing the market fee from the appellant. The suit was ultimately decreed in favour of the appellant in the year 1985. An appeal was preferred against the decree by the Market Committee, which was allowed on 28-8-1993 by the 2nd Additional District Judge. The second appeal preferred by the appellant was admitted and the judgment and order passed by the first appellate Court was stayed. The second appeal was disposed of in the year 1994 remanding the matter to the first appellate Court for consideration of the points which remained undisposed of. The appellant approached this Court by filing a Special Leave Petition in which leave was granted and it was numbered as Civil Appeal No. 1282 of 1995. However, in 1996 the learned single Judge dismissed the Second Appeal No. 516 of 1993 which was filed by the appellant in the High Court against which also a special leave petition was filed (S.L.P. (C) No. 9811 of 1996) in this Court.

(3.) During the pendency of the above matters before this Court, the Market Committee issued notices to the appellant for assessment for the years 1977-78 to 1995-96. The appellant was called upon to produce the relevant records before the Assessment Sub-Committee. In all 19 notices were issued for the period 1977-78 to 1995-96 for each year separately. This Court had also dismissed the S.L.P. (C) No. 9811 of 1996 in limine preferred against the judgment of the High Court dismissing the Second Appeal No. 516 of 1993. Ultimately market fee was assessed on the basis of best judgment assessment in respect of the 19 years, namely, from 1977-78 to 1995-96. Besides the market fee, penalty was also imposed to the tune of Rs. 1,85,51,658/-. The respondent, after making adjustment of the payments made, issued demand notices for depositing the market fee and the amount of penalty.