DHARAMPAL SATYAPAL LTD Vs. STATE OF BIHAR

JUDGEMENT

(1.) COMMON issues have been raised in this batch of writ petitions, have been heard together, and are being disposed of by a common judgment. The representative facts shall be drawn from c. W. J. C. No. 10145 of 2001 (M/s. Dharampal satyapal Ltd. and another v: The State of bihar and Others ).

(2.) A brief narration of facts essential for the disposal of the writ petitions may be indicated. The petitioners calls in question different notices contained in Annexures 6, 7 and 9, issued by respondent No. 4 (The Secretary, Agriculture produce Market Committee, Musallahpur, Patna) (for short Market committee), whereby the writ petitioners have been assessed to pay market fee on 'zafrani Zarda' under the provisions of the bihar Agriculture Produce Markets Act, 1960 (for short 'the Act' ). The petitioners have also'called in question the notification dated 18th July, 1991, under Section 39 of the Act, and published in the official gazette on 31st July 1991, whereby the schedule appended to the Act has been amended and under head "11 (Narcotics)", two items, namely, Zarda and Zafrani Zarda etc. , have been added.

(3.) PETITIONER No. 1 is a company incorporated under the Companies Act 1956, and is engaged in the manufacture, inter alia, of tulsi brand of Zafrani Zarda in its different factories located outside the State of Bihar and selling the same from its various depots Situate throughout India including the state of Bihar at New Bye-pass Road, anishabad, within Gardanibag Police Station, in the township of Patna. The company is also engaged in marketing and sale of spices under the brand name 'catch'. The raw-material used for manufacture/production of Zafrani Zarda is tobacco which is already incorporated in the Schedule of the act. The petitioners' case is that the process of manufacture of Zafrani Zarda is a sophisticated and cumbersome process. The manufacturers purchase tobacco grown by the agriculturist which is then sorted out and bundled. Plain water is then sprinkled on the bundles of tobacco, and then allowed to ferment for a few days which generate heat in order to cure it. The stalks of tobacco are then separated and removed. The impurities in the tobacco are then sifted out, and are then blended with permissible colours and chemicals, cut into strips sheafed by machine, and allowed to dry. This product of tobacco is then called Sada Zarda. Manufacturers of Zafrani Zarda like the petitioners purchase Sada Zarda from various places, brought to the factory premises and thereafter various other ingredients are mixed in fixed proportion which is ultimately called Zafrani Zarda. It is thereafter packed in special pouches, or tin containers of various sizes, for marketing and sale in different brand nanies.