HARINAGAR SUGAR MILLS LTD Vs. STATE OF BIHAR

JUDGEMENT

(1.) These nineteen writ applications have been filed by the common petitioner (for the convenience 'the petitioner') for quashing the assessment orders passed in nineteen cases on 16.5.1997 by respondent No. 6, the Sub -Divisional Officer, Bagaha, on behalf of the Assessment Sub -Committee of the Bagaha Agricultural Produce Marketing Committee, formerly known as Ramnagar Agricultural Produce Market Committee (for short 'the Market Committee7) for the assessment years 1977 -78 to 1994 -95 making a total demand of Rs. 5,52,19,712.84. as market -fee and Rs. 1,85,51,071 towards penalty from the petitioner, order dated 29.5.1998 passed by the Regional Director, Bihar Agricultural Produce Marketing Board, Muzaffarpur (respondent No. 7) in all the cases dismissing the nineteen appeals passed against the assessment order and order dated 20.3.1999 dismissing the revision applications against the appellate order passed by the Managing Director, Bihar Agricultural Produce Marketing Board, Patna (respondent No. 3). The said orders have been annexed as Annexures 26, 31 and 40 in C.W.J.C. No. 4261 of 1999.

(2.) Learned Counsel for the parties agree that the points involved in all the nineteen cases are the same have been disposed of by a common order by the appellate Court and the revisional Court and as all the writ, applications have been heard together, they are being disposed of by this common order.

(3.) The necessary facts essential to dispose of the matter are that the Bihar Agricultural Produce Market Act, 1960, (for short 'the Act') was enacted for the better regulation of buying and selling of agricultural produce and the establishment of markets for agricultural produce in the State of Bihar and for matters connected therewith. The sugar was also included as one of the agricultural produce and was covered by the provisions of the Act. Two sugar factories Belsund Sugar Co. Ltd. and Anr. challenged the authority of the Market Committee to levy the fee under the provisions of the Act on several grounds. The matter was finally disposed of by a Division Bench of this Court in Belsund Sugar Co. Ltd. v. State of Bihar, . This Court held that the State Government is competent to legislate the Act and the provisions of the Act are not repugnant to the Essential Commodities Act and other Control Orders and there is element of quid pro quo in imposition of fee. This Court granted certificate of fitness under Articles 132(1) and 133(1) of the Constitution of India and in pursuance of that an appeal bearing Civil Appeal No. 398 of 1977 was filed before the apex Court.