Skip to content


Chhaganlal Mansukhlal and anr. Vs. K.K. Bhatt and anr. - Court Judgment

LegalCrystal Citation
SubjectOther Taxes
CourtSupreme Court of India
Decided On
Case NumberCivil Appeal No. 1967 of 1975.
Judge
Reported inAIR1981SC1102; (1981)GLR574(SC); 1981(1)SCALE426; (1981)2SCC418; [1981]2SCR761; 1981(13)LC185(SC)
ActsGujarat Agricultural Produce Markets Rules, 1965 - Rules 48, 48(2) and 49; Gujarat Agricultural Produce Markets Act - Sections 6(3)
AppellantChhaganlal Mansukhlal and anr.
RespondentK.K. Bhatt and anr.
Appellant Advocate Soli J. Sorabjee,; Vimal Dave,; Subhash Parikh,;
Respondent Advocate S.H. Sheth, ; M.V. Goswami, ; Ambrish Kumar, ;
Prior historyAppeal by special leave from the Judgment and Order dated October 30, 1974/November 1, 1974 of the Gujarat High Court in Special Civil Application No. 766 of 1971--
Excerpt:
.....only when a final judgment is rendered. rendition of a final judgment which would be binding on the whole world being conclusive in nature shall take a long time. as and when a judgment is rendered in one proceeding subject to the admissibility thereof keeping in view section 43 of the evidence act may be produced in another proceeding-it is, however, beyond any cavil that a judgment rendered by a probate court is a judgment in rem. it is binding on all courts and authorities. being a judgment in rem it will have effect over other judgments. a judgment in rem indisputably is conclusive in a criminal as well as in a civil proceeding.....as soon as it is brought into the principal market yard or sub-market yard or market proper or market area as may be specified in the bye-laws :provided that the fees so paid shall be refunded(i) on production of sufficient proof that such produce was not sold within the limits of the market area; or(ii) if such produce is brought from outside the market area into the market area for use therein by the industrial concerns situated in the market area or for export and in respect of which a declaration has been made and a certificate has been obtained in form v subject to the proviso to sub-rule (2) of rule 48.(2) the licence fees payable under rule 56 or 57 shall be paid alongwith the application for licence but in case the market committee refuses the grant or renewal of a licence.....
Judgment:

Koshal, J.

1. Rule 49 of the Gujarat Agricultural Produce Markets Rules, 1965, the vires and the reasonableness of which have been the main points of challenge in this appeal, runs thus :

49. (1) The fees on agricultural produce shall be payable as soon as it is brought into the principal market yard or sub-market yard or market proper or market area as may be specified in the bye-laws :

Provided that the fees so paid shall be refunded

(i) on production of sufficient proof that such produce was not sold within the limits of the market area; or

(ii) if such produce is brought from outside the market area into the market area for use therein by the industrial concerns situated in the market area or for export and in respect of which a declaration has been made and a certificate has been obtained in Form V subject to the proviso to Sub-rule (2) of Rule 48.

(2) The licence fees payable under Rule 56 or 57 shall be paid alongwith the application for licence but in case the market committee refuses the grant or renewal of a licence the fees recovered shall be refunded to the applicant.

2. In order to interpret this Rule it is also necessary to set out revisions of Rule 48. They are :

48. (1) The market committee shall levy and collect fees on agricultural produce bought or sold in the market area at such rate as may be specified in the byelaws subject to the following minima and maxima viz.

(1) rates when, levied ad valorem shall not be less than 10 paise and shall not exceed 40 paise per hundred rupees.

(2) rates when levied in respect of cattle, sheep or goat shall not be less than 10 paise per animal and shall not exceed Rs. 2 per animal.

Explanation :-For the purposes of this rule a sale of agricultural produce shall be deemed to have taken place in a market area if it has been weighed or measured or surveyed or delivered in case of cattle in the market area for the purpose of sale, notwithstanding the fact that the property in the agricultural produce has by reason of such sale passed to a person in a place outside the market area.

(2) No fees shall be levied on agricultural produce brought from outside the market area into the market area for use therein by the industrial concerns situated in the market area or for export and in respect of which declaration has been made and a certificate has been obtained in Form V :

Provided that if such agricultural produce brought into the market area for export is not exported or removed therefrom before the expiry of twenty days from the date on which it was so brought, the market committee shall levy and collect fees on such agricultural produce from the person bringing the produce into the market area at such rates as may be specified in the bye-laws subject to the maxima and minima specified in Sub-rule (i):

Provided that no fee shall be payable on a sale or purchase to which Sub-section (3) of Section 6 applies.

3. Learned counsel for the parties are agreed that the provisions of Rule 49 are not attracted and no fees are payable under it at the stage of entry into a market area if the agricultural produce in question is covered by Sub-rule 2 of Rule 48, i.e. when such produce fulfils either of the following conditions :

(1) It is brought from outside the market area there into for use therein by the industrial concerns situated therein or for export and in respect thereof a declaration has been made and a certificate has been obtained in Form V.

(2) The sale or purchase of such produce comes within the purview of Sub-section (3) of Section 6 of the Gujarat Agricultural Produce Markets Act.

4. After hearing learned counsel for the parties, we accept this interpretation of Rules 48 & 49 which flows directly from the language employed therein, and hold that Rule 49 will have no application to any case which falls within the ambit of Sub-rule (2) of Rule 48.

5. Mr. Sorabjee does not press any other point in support of the appeal which is accepted to the extent of the above interpretation of Rules 48 & 49 but is otherwise dismissed with no order as to costs.


Save Judgments// Add Notes // Store Search Result sets // Organizer Client Files //