ITC AGRO TECH LTD Vs. STATE OF MAHARASHTRA

JUDGEMENT

(1.) In Writ Petition No.3278 of 1991, the first petitioner is a public limited company incorporated under the Companies Act, 1956 with its registered office at 31, Sarojini Devi Road, Secunderabad - 500 003 and is engaged, inter alia, in the business of manufacture and sale of edible oils, including refined Sunflower Oil and refined Groundnut Oil. It has its refineries/factories at two places in the State of Andhra Pradesh and it purchases oil seeds from various sources, including the Agricultural Produce Marketing Committees, Farmers and other agencies in the State of Andhra Pradesh and Karnataka. These oil seeds are subsequently crushed/processed and refined oil is produced in the factories/refineries in Andhra Pradesh and are sold as refined edible oils in packages of 15 kg., 5 kg., 2 kg., and 1 kg. containers in the brand names of "Sundrop", Crystal" and "Sudham" respectively. The Company has various sales outlets in many parts of the country and in the State of Maharashtra as well, where it has been carrying on its activities of marketing the refined Sunflower and Groundnut oils, namely, through its C & F agents located at Chunilal Compound Retiwala Industrial Estate, Anant Ganpat Pawar Cross Lane No.2, Byculla, Bombay - 400 027 and also through other agents. The Company claims that the activity of selling edible oils is only an ancillary activity of manufacture of refined edible oils which commenced in the year 1989. The company also sells its products to the wholesale bulk purchasers either in loose form in the city of Mumbai on principal to principal basis and all these products are transported from the factories/refineries to Mumbai. The second petitioner is the share holder of the first petitioner-company.

(2.) The respondent no.1 is the State of Maharashtra and respondent no.3 is a statutory body established under the Bombay Agricultural Produce Regulation Marketing Act, 1939 and subsequently it was deemed to be established under the Maharashtra Agricultural Produce Marketing (Regulation) Act, 1963 (for short "the Act"). The respondent no.2 is the Director of Agricultural Marketing within the meaning of Section 2 (f) of the Act. The respondent no.1 - State of Maharashtra by exercising its powers under Section 62 of the Act issued a Notification dated 27/9/1987 amending the entries in the Schedule to the said Act, as follows:-

(3.) The challenge to the notifications and the demands made by the respondent no.3 for payment of market fees and supervision charges are mainly based on the following grounds:-