BEJAM VEERANNA VENKAT NARSIMLU NIZAMABAD Vs. COMMISSIONER OF CIVIL SUPPLIES AND COMMISSIONER OF COMMERCIAL TAXES BOARD OF REVENUE A P HYDERABAD

JUDGEMENT

(1.) The question raised in all these writ petitions is whether the Government can reduce the notified price payable to the millers or dealers on the levy rice they had to supply to the Food Corporation of India with retrospective effect. The petitioners are dealers in rice holding wholesale licence under the Andhra Pradesh Foodgrains Dealers Licensing Order. Some of them are also millers. They purchase paddy and convert the same into rice. Under the Andhra Pradesh Rice Procurement (Levy) and Restriction on Sale Order, 1967, they are required to supply 50% of such rice to the Food Corporation of India, the statutory agent of the Government. The price to be paid for such rice is fixed under the Andhra Pradesh Rice (Procurement Ex-Mill Prices) Order,1975 Under that order, price was fixed for the rice milled from the paddy of Khariff 1975-76 or subsequent crop. The rice was classified as (a) Long Slender or Shore Slender (b) Medium Slender (c) Long Bold and (d) Short Bold and the ex-mill (wholesale price) per quintal of rice (i.e. 2-69 maunds) was fixed at Rs. 149, Rs. 136/- Rs. 125/-and Rs.121/- respectively. That price was inclusive of taxes on paddy and exclusive of salestax and cost of new gunny bag. The petitioners were supplying rice to the Food Corporation of India and they were being paid at the rate. While so, Memo No.2847/CS 1 (2)/76-4 dated 19th January, 1977 was issued by the ex-officio Secretary, Food and Agriculture Department, Government of Andhra Pradesh revising the exmill prices of rice. For (1) Long/Short slender (2) Medium slender (3) Long Bold and (4) Short Bold, the revised prices fixed are Rs. 146 Rs. 133. Rs. 122 and Rs. 118 respectively.

(2.) Thus the prices were reduced by Rs. 3 for each variety of rice. Under that memo it is further stated that the said prices would come into effect from 7th September, 1976. Pursuant to that memo, the Food Corporation of India wants to pay at the reduced prices for the rice supplied to them. They also want to recover the difference in the prices from the millers and the dealers for the rice supplied from 7th September, 1976. Questioning that memo, these writ petitions have been filed in this Court.

(3.) While these writ petitions were pending, the Government of Andhra Pradesh issued an amendment to the Andhra Pradesh Rice (Procurement Ex- Mill Prices) Order 1975 on 24th February, 1977 (hereinafter called the Ex Mill Prices Order). That amendment is deemed to have come into force on 7th September, 1976. The prices of rice have been revised for the different varieties in the same manner in which they were revised in the Government Memo. 2847/ CS. 1 (2)/1976/4 dated 19th January 1977 by reducing them by Rs, 3 for each variety.