2008 (5) TMI 646 - SC - Indian Laws

Whether the levy of market fee on Zafrani Zarda in terms of the provisions of Bihar Agricultural Produce Market Act 1960 is valid?

Summary

Issues:
Validity of market fee levy on Zafrani Zarda under Bihar Agricultural Produce Market Act, 1960.

Analysis:
The judgment involved three appeals questioning the validity of market fee levy on Zafrani Zarda under the Bihar Agricultural Produce Market Act, 1960. The writ petitioners, who are manufacturers of Zafrani Zarda, contended that Zafrani Zarda is a manufactured form of tobacco. The Supreme Court referred to a previous case where the definition of 'agricultural produce' was expanded to include 'manufactured goods' from tobacco. It was noted that Zafrani Zarda was added to the Schedule of the Act in 1991 through a notification by the State of Bihar.

The State Government issued another notification in 1992 to regulate the sale, purchase, storage, and processing of agricultural produce, including Zafrani Zarda. The writ petitioners challenged the assessment of market fee based on these notifications. The High Court, in its judgment, held that the market fee would be leviable from 31st August, 1992, failing to address key contentions raised by the parties. The High Court did not consider the validity of the notifications or the argument that certain provisions of the Act were not applicable.

The Supreme Court found the issues raised by the parties to be significant and should have been addressed by the High Court. Therefore, the impugned judgment was set aside, and the matters were remitted back to the High Court for reconsideration. The Court directed the High Court to dispose of the cases expeditiously, preferably within six months. Any additional contentions raised by the parties would also be considered by the High Court on their merits. The appeals were disposed of with no order as to costs.