T. A Balasubramanyyam
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The same is covered by the provisions of the Central Excise and Salt Act It is also their contention that they purchase the raw materials from outside the local limits of the jurisdiction of the complainant and after processing the same, they also do not sell any finished product within the said local area. It is also alleged that the petitioners were carrying on such business without the requisite licence.
The other facet of the offence imputed to them is avoidance of the levy of fees by the Market Committee, which is covered bengal oil brokers association Section 17which reads as follows:.
It however transpires that both the above judgments have been appealed against on behalf of the State. Consequently both these Single Bench Judgments and Orders cannot be taken to be the final word on the subject. On the other hand certain decisions bengal oil brokers association been cited on behalf of the State to show that the petitioners are covered by the bengal oil brokers association of the W.
Bengal oil brokers association Produce Marketing Regulation Act, Saj Food Products Private Bengal oil brokers association. It is the case set up by the petitioners that they cannot be treated as traders as defined in section 2 1 t of the Act. They were required to file fortnightly return by notice dated It is submitted that as per section 17 2 of the Act, only licensed trader has to deposit the market fee.
Since they are involved in the business of manufacturing, marketing and selling of biscuits and other bakery products, no market fee can be levied from them. They cannot be termed as licensed traders. The order of assessment was passed demanding Rs.
Bengal oil brokers association market fee has been levied on the basis of purchases made by them. They are not liable to make payment under section 17A of the Act. The order of assessment has been questioned by way of filing the writ applications before the Single Bench.
The Single Bench by the impugned order has granted interim stay on the levy of the market fee on the ground that prima facie a person has to both purchase and sell agricultural produce in course of such person's business for such person to be regarded as a trader within the meaning of Section 2 1 t of the Act and for the obligation to be fastened on such person under section 17A of the Act.
Aggrieved by the impugned order, the intra- court appeals have been preferred. It was submitted by Mr. Roy, learned counsel appearing on behalf of the appellants that similar impugned order has been set aside in other matters, where facts are more or less similar. It is not necessary to involve in selling and purchasing both of the agricultural produce so as to attracting levy of the market fee under section 17 of the Act.
The market fee is not being levied upon finished products, but on the purchase of the agricultural produce within the market area for which the market committee is authorised. Various notifications have been issued by the market committee. As such, the order passed by the Single Bench staying recovery of market fee cannot be said to be in accordance with law and the same deserves to be set aside.
After hearing the learned counsel appearing bengal oil brokers association behalf of the parties, we are of the considered opinion that the case is more or less the same which we have dealt with in the previous decision passed in M. Licence is necessary to be issued not only to a trader, commission agent, broker, weighman, measurer, warehouseman or surveyor, but also necessary for sale or purchase of agricultural produce and other matters as specified in section 13 1 of the Act.
Thus, purchase by itself where person is trader, commission agent, broker, weighman, etc. Section 13 1 of the Act is quoted below:. However, in the latter portion, the definition has been made inclusive and specific, i. When we consider 'includes a person ordinarily engaged in the business', it is apparent that the person who is ordinarily purchasing agricultural produce in huge quantity for commercial exploitation is definitely a person 'ordinarily engaged in the business of purchase' for the commercial purpose.
Such a person, in our considered opinion, beyond an bengal oil brokers association of doubt, is required to make payment of market fee and would be a 'trader'. When we consider the provisions contained in section 17 of the Act with respect to levy of the market fee, it is apparent that notwithstanding anything contained in the Bengal Finance Sales Tax Act, Ben.
Act VI of or any other law relating to taxation of agricultural produce in force, the market committee is empowered to levy fees on any agricultural produce "sold" in the market area. Bengal oil brokers association is not in dispute that agricultural produce has been sold in the market area to the respondents and as per section 17 2 of the Act, it is the purchaser who is liable to make the payment of the market fee in the manner prescribed therein.
The submission was raised that on biscuits and other manufactured bakery products no market fee can be levied. Such argument is fallacious on the face of it as no market fee can be levied on manufactured products.
It is the market fee, which has been levied as apparent from the order of the assessment on the quantity of the purchases made of agricultural produce for commercial exploitation and on that basis the order has been based, which cannot be said to be violative of the provisions contained in section 17A of the Act nor it can be said that the market fee is being levied on a manufactured product.
We have dealt with the same order in other appeals decided on There should not normally be any interim stay on levy of market fee, recovery of tax etc.
Thus, even otherwise, there is no justification to grant interim relief prayed for by the petitioners. As there is a conflict of decisions regarding application of the Act to the manufacturer of any product created by processing bengal oil brokers association what is undoubtedly "Agricultural Produce" and it has also been observed in certain decisions that the Act applies in case of manufacturing of Biscuits as well as Bakery items, this Court finds no justification to allow the Revisional Application at this stage, considering that trial in the case has virtually not yet commenced.
For the above reasons the Revisional Application is dismissed and the Trial Bengal oil brokers association is directed to proceed with the pending complaint case in accordance with law. The petitioners shall however be at liberty to raise all points including maintainability before the learned Trial Court at the final stage of the arguments.
Needless to mention, the Trial Court shall come to its independent final decision without bengal oil brokers association influenced by any observations in this judgement. Shree Renuka Sugars Limited And Try out our Premium Member services: Free for one month and pay only if you like it.