Holding

Rule 49 will have no application to any case which falls within the ambit of sub‑rule (2) of Rule 48.

Summary

The Supreme Court considered an appeal by Chhanganlal Mansukhlal challenging the applicability of fee provisions under Rule 49 of the Gujarat Agricultural Produce Markets Rules, 1965. The dispute centered on whether fees are payable when agricultural produce is brought into a market area for industrial use or export, having a declaration and Form V certificate, or when the transaction falls under sub‑section (3) of section 6 of the Gujarat Agricultural Produce Markets Act, both covered by sub‑rule (2) of Rule 48. Both parties agreed that such cases should be exempt from Rule 49. The Court examined the language of Rules 48 and 49 and held that Rule 49 does not apply to any case within the ambit of sub‑rule (2) of Rule 48. Consequently, the appeal was partly allowed, affirming the exemption, while other points were dismissed without costs.

Issues considered

What is the scope of Rule 49 of the Gujarat Agricultural Produce Markets Rules, 1965 in relation to produce covered by sub‑rule (2) of Rule 48?
Does a declaration and Form V certificate exempt agricultural produce brought into a market area from the fees prescribed under Rule 49?
Is a sale or purchase falling under sub‑section (3) of section 6 of the Gujarat Agricultural Produce Markets Act exempt from Rule 49?

Legislation cited

Gujarat Agricultural Produce Markets Acts. 6

Subjects

Gujarat Agricultural Produce Markets RulesRule 49Rule 48market feesstatutory interpretationspecial leaveappealagricultural producefee exemption

Judgment

761

CHHANGANLAL MANSUKHLAL & ANR. A
v.
K. K. BHATT & ANR.
February 5, 1981
[A. D. KOSHAL, V. BALAKRISHNA ERADI AND R. B. MISRA, JJ.) B

Guiarat Agricultural Produce Markets Rules 1965-Rules 48 and 49-
.Scope of.

The parties are agreed that the provisions of Rule 49 are not attracted and
no fee1 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.,
c
when inch produce fulfils either of the following conditions : -

(i) It is brought from outside the market area thereinto 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.
D
(ii) 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.

Th.it interpretation of Rules 48 and 49 which flows directly from the language
employed therein is correct. Rule 49 will have no a,pplication to any case which
falls within the ambit of sub-rule (2) of Rule 48. [763 D-E] E

CIVIL APPELLATE JURISDICTION : Civil Appeal No. 1967 of 1975.
Appeal by Special Leave from the Judgment and Order dated
30-10-74/1-11-1974 of the Gujarat High Court in Special Civil
Application No. 766/71. F
Soli !. Sorabji, Vimal Dave, Subhash Parikh and Gopal Subharii-
maniyan for the Appellants.
S. H. Sheth, M. V. Go,rwami, Ambrish Kumar and Mukesh
-Goswami for Respondent No. 1.
G
!. L. Nain, M. N. Shroff and S. C. Patel for Respondent No. 2.
The Judgment of the Court was delivered by
KosHAL, J.-Rule 49 of the Gujarat Agricultural Produce Mar-
keti Rules, 1965, the vires and the reasonableness of which have
been the main points of challenge in this appeal, runs thus : H
"49. ( 1) The fees on agricultural produce shall be pay-
able as soon as it is brought into the principal market
762 SUPREME COURT REPORTS (1981] 2 5.C.R.
A
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 pr6duce
B
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 certi-
ficate has been obtained in Form V subject to the proviso
c to sub-rule (2) of rule 48.
(2) The licence f~es 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."
D In order to interpret this Rule it is also necessary to set ont the
provisions of Rule 48. They are : ·
"48. ( 1) The market committee shall levy and collect
fees on agricultural produce bought or sold in the llllliket
area at such rate as may be specified in the byelaws sub-
ject 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 sur-
veyed or delivered in case of cattle in the market area far
G
the purpose of sale, notwithstanding the fact that the pro-
perty 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
H market area or for export and in respect of which declara- •
tion has been made and a certificate has been obtained
in Form V:
CHHANGANLAL v. K. K. BHATT (Koshal, !.) 763

Provided that if such agricultural produce brought in- A
to 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) oe section 6 applies."
'
Learned counsel for the parties are agreed thilt the provisions of
' c
Rule 49 are not attracted and no fees are payable under it at the
'i

'
\
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 situat- J)
ed therein or for export and in respect thereof a
declaration has been made and a c~rtificate has
been obtained in Form V.
(2) The sale or purchase of such produce comes with-
in the purview of .sub-section (3) of section 6 of E
the Gujarat Agricultural Pro<luce Markets Act.
After hearing learned counsel for the parties, we accept this in-
terpretation 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 .
.iJ. 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.

P.B.R. Appeal partly allowed.