ADARSH RICE MILL Vs. STATE OF BIHAR

JUDGEMENT

(1.) All these writ applications have been heard together since common questions of law are involved. There could be a slight variation in the facts because of periods for which procurement of rice has been made by the respondent Food Corporation of India from time to time but the basic dispute which has been carried to this Court is common.

(2.) Government of India, Ministry of Consumer Affairs and Public Distribution as it was known then have been issuing notifications for procurement of rice from various rice mills. For common rice a particular price has been fixed and for Grade-rice some other amounts are notified. This was the minimum basic price for the procurement. The notification in this regard further categorically states "the above price is exclusive of taxes, if any, leviable at rice stage.

(3.) According to the petitioners, therefore, the minimum basic price notified by the Government of India is the price which these petitioners are entitled to on effecting supplies to Food Corporation of India, the procurement agency. In addition to the basic price of procurement, the petitioners have claimed that they should be paid or the Sales Tax Department should be made over sales tax @ 4 per cent, which is a statutory obligation. In addition to the same the petitioners also want reimbursement of the amount which they have paid as market fee, which is quantified at 1 per cent. They also want the cost of transportation, the cost of gunny bags in which rice is supplied and the stitching charges.