VIJAYA COTTON TRADERS Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) The petitioners in these Writ Petitions are merchants carrying on business in various parts of Andhra Pradesh. The main prayer in these Writ Petitions is to declare the Notification dated 21-1-1978 published in the Andhra Pradesh Gazette dated 23-2-1978 as null and void and to direct the concerned Market Committees not to collect market fees at the rate of 1% in respect of all notified commodities under Section 12 (1) of the Andhra Pradesh (Agricultural Produce and Livestock) Markets Act, 1966, (referred to in this judgment as the Act) read with Bye-law No. 24 (1) of the Bye-laws of the Market Committee.

(2.) Under Section 12 of the Act, the market committee shall levy fees on any notified agricultural produce, livestock or products of livestock purchased or sold in the notified market area at such rate, not exceeding one rupee, as may be specified in the Bye-laws for every hundred rupees of the aggregate amount for which the notified agricultural produce, livestock or products of livestock is purchased or sold, whether for cash or deferred payment or other valuable consideration. The bye-laws of all the market committees initially provided for the levy of market fees at 0-25 Ps. per cent. Subsequently it was increased to 0.50 ps. Under Section 34 of the Act, a market Committee may, in respect of the notified area for which it was constituted, with the previous sanction of the Director of Marketing, make bye-laws for the regulation of the business and the conditions of trading therein. Section 33 of the Act enables the Government to make rules for carrying out the purposes of the Act. By Rule 86-D of the rules framed under the Act, it was provided that there should be a State Agricultural Marketing Advisory Board for the purpose of tendering advice to the Government in all matters relating to the utilisation of Central Market Fund for the general improvement of the markets in the State, to consider different problems of the market committees arising out of the enforcement of the Act and the rules and to tender necessary advice from time to time, to review the working of regulated markets in general and suggest measures to bring about uniformity in marketing practices in all the regulated markets.

(3.) The State Advisory Board at its meeting held on 27th and 28th of January, 1976 resolved to recommend the enhancement of the existing rate of market fees to 1% so as to enable the market committees to build up adequate finances to meet the increasing cost towards land acquisition and establishment of markets with all modern infrastructure facilities. The Director of Marketing accordingly addressed a letter No. Re. 1 (2) 736/76 dated 16-2-1976 to all the Agricultural Market Committees in the Andhra Pradesh State, inviting their attention to the resolution of the Advisory Board and requesting them to place the proposals of the enhancement of the existing rates of market fees to Re. 1-00% ad valorem before the market committees and communicate the consent of the committee for the enhanced rate under Section 12 (1) of the Act of 1966 read with bye-law No. 24 (1) of the Market Committee Bye-laws. Accordingly each market committee passed a resolution accepting the recommendations of the Advisory Board and resolving to enhance the market fee to Re. 1-00%. They also requested the Director for necessary sanction and approval of the existing Bye-law 24 (1) of the Market Committee which had at that time provided for levying of a market fee of 0-50 p.%. Thereafter the impugned notification was issued by the Director of Marketing, approving the amendment to the existing Bye-law 24 (1) of the Market Committees, which is in the following terms: AMENDMENT For the existing Schedule under Bye-law 24 (11, the following shall be substituted, namely:--