P CHATHU AND CO Vs. STATE OF KERALA

JUDGEMENT

(1.) THE only question for determination in these writ applications is the validity of S. 11 of the Madras Commercial Crops Markets act, (hereinafter referred to as the Act) 1933 as amended by the Madras commercial Crops Markets (Amendment and Validation) Act, 1964 (Act V of 1964 ). THE amended Section is in these terms:- "section 11. Levy of Fees by market. Committees. (1) THE Market Committee shall levy fees on the notified commercial crops mentioned in column (1) of the table below bought and sold in the notified area at the rates specified against them in column (2) of that table. Explanation:-For the purpose of this section, all notified commercial crops leaving a notified area shall, unless the contrary is proved, be presumed to be bought and sold within such area. (2) THE fess referred to in sub-section (1) shall be paid by the purchaser of the commercial crops concerned; Provided that where the purchaser of a commercial crop cannot be identified, the fee shall be paid by the seller. (3) Out of the fees levied under sub-section (1) on the commercial crop or crops bought and sold in any part of the notified area which constitutes a village as defined in the law for the time being in force for the constitution of Panchayats, such proportion as may be prescribed shall be paid by the Market Committee to the Panchayat concerned. "

(2.) THE point raised is that though the Section purports to levy 'fees', in substance and reality there is a levy of tax. This tax has also been imposed on the purchase and sale of certain commodities and such a tax cannot be imposed. It may be mentioned here that the levy has not been sought to be supported as a tax at all. THE contention on behalf of the State is that the impost is really fees and there can be no objection to such an impost.

(3.) THIS in its turn, it appears, necessitated further amendment and that has been effected by Act V of 1964 and the amended Section, i have already extracted.