Judgment

Thomas, J.-The area of dispute, in this appeal, has now been consid­erably narrowed down with the decision of a three Judge Bench of this Court in Food Corporation of India v. State of Kerala1. The short question now remains is whether the market fee payable to the Market Committee constituted under the U.P. Krishi Utpadan Mandi Adhiniyam, 1964 (for short “the Act”) shall be paid by the seller or purchaser when agricultural produce is sold by a trader to the Government. The aforesaid question arose under the following facts:

2. Appellants are traders carrying on business in rice milling within certain areas constituted in the State of U.P. Such areas have been notified as market areas under Section 6 of the Act. Among the busi­ness activities carried on by the appellants they purchased paddy from cultivators or sellers outside the market area and the paddy so purchased is hulled to make it rice for sale. They are under a duty to sell rice to the State Government as levy by virtue of Clause (3) of the U.P. Rice and Paddy (Levy and Regulation of Trade) Order, 1985, which was issued under the Essential Commodities Act. It will herein­after be referred to as the “Levy Order”.

3.