PREM CHAND RAM LAL Vs. STATE OF PUNJAB

JUDGEMENT

(1.) MESSERS. Prem Chand Ram Lal is a firm dealing in Gur, Shakkar, Khandsari, Banaspati Oil etc. , at Sangrur, and holds the license under the Punjab Agricultural Produce Markets Act (hereinafter called the Act), from the Market Committee, Sangrur. The firm is also licensed under the Punjab General Sales Tax Act, the Central Sales Tax Act and the Punjab Licensing Order for the sale of Gur, Shakkar and Khandsari etc. , The firm started business with effect from 1st April, 1967 and during the year 1967-68, in the course of its business, it imported Gur, Shakkar and Khandsari etc. from outside Mandis of Haryana and U. P. for purposes of trade. These goods were purchased from the commission agents (Pacca Arhtias) in packed condition against regular bills and were transported through the railways or by road under railway receipts and goods receipts and octroi was duly deposited at the time of te import. These goods were sold by the petitioner-firm at its shop to the customers in the same packed conditions in which they were imported. The emphasis of the petitioner is on the fact that the transactions of importing goods from outside Mandis had nothing to do with the producers or the Kacha Arhtias. The petitioner-firm did not file any returns with regard to the imported goods in form 'm' and only filed returns in respect o the transactions made with the producers, the value of which was shown as Rs. 2781/- for the year. In November, 1967, the Secretary of the Market committee, Sangrur, called upon the petitioner-firm to produce its accounts to enable him to levy the market fee on the goods brought by it from outside Mandis of Haryana and U. P. etc. In reply the petitioner submitted that the entries relating to goods bought and sold in the market yard were maintained in the returns filed by it in form 'm' and the necessary fee thereon had already been deposited. The petitioner-firm maintained that it was not liable to pay any market fee on the transactions with regard to the imported goods and was only liable to pay market fee on the transactions had with the producers of the agricultural produce. After some correspondence, the Administrator of the Market committee levied Rs. 5014/- as market fee on the basis of best judgment assessment and imposed an equal amount by way of penalty by order dated 30th September, 1969. A demand of Rs. 10,028/ was raised against the petitioner-firm and a demand notice was issued for the payment thereof which was received by the petitioner on 14th October, 1968. The Petitioner-firm filed the present writ petition on 28th October, 1968, praying for the quashing of the assessment order and the notice of demand, copies of which are Annexures 'l' and 'k' to the writ petition. The returns have been filed by the respondents.

(2.) THE first point argued before me is that no market fee can be levied under the Act in respect of the transactions of purchase or sale which are not made with the producers of the agricultural produce. I find myself unable to agree with that submission. The argument of the learned counsel is that the object of the Act is to regulate the buying and selling of commercial cops, by providing suitable and regulated market, by eliminating middlemen and bringing face to face the producer and the buyer and to ensure a fair price to the producer. He following passage from the judgment of their Lordships of the Supreme Court in M. C. V. S. Arunachala Nadar v. State of Madras, AIR 1959 SC 300, is relied upon :-

(3.) THE validity of the market fee was again considered by their Lordships of the Supreme Court in Lakhan Lal v. State of Bihar, Writ Petns. Nos. 103 and 199 of 1967, D/- 26-3-1968 = (Reported in AIR 1968 SC 1408 ). The Act under consideration was the Bihar Agricultural Produce Markets Act, 1960 and this is what their Lordships observed ;