L. NARASIMHA REDDY, J.

( 1 ) THE petitioner is a rice mill. It submitted an application to the respondent for issuance of "export permit books". Through letter dated 30. 11. 2004, the respondent informed the petitioner that it would not be issued permit book, unless market fee is paid in respect of the agricultural produce, covered by the used permit books, and unless it executes an undertaking, in terms of condition No. 8 of the licence, to the effect that it shall collect the market fee from the purchasers and remit the same to the committee.

( 2 ) THE petitioner contends that the obligation to pay market fee is that of the purchaser, and it is the duty of the respondent to collect the market fee. It is also stated that the permits, contained in the export permit book, contain all the particulars of the sale, such as the description of the purchaser, place and means of export, name of the produce and its weighment, and the fact whether market fee was or not; and in that view of the there ought not have been any difficulty the respondent to take steps to collect market fee. It is also stated that, if market fee is due from the petitioner, procedure prescribed under the a. p. (agricultural produce and livestock) markets Act, 1966 (for short "the act"), and Rules made there under has to be followed and the petitioner cannot be pressurized pay that amount, indirectly.

( 3 ) THE respondent filed a counter- affidavit and the letter dated 30. 11. 2004 is sought to be justified. Reference is made to Section 12 of the Act, conditions of licence, prescribed under the rules, and bye-law 24 of the approved bye-laws of the market committees. It is alleged that the export permits issued to the licensees are vital in the matter of ensuring collection and remittance of licence fee, and since the petitioner did not comply with the conditions of the licence, the book of export permits was denied to it.

( 4 ) LEARNED counsel for the petitioner submits that being a licensee under Section 7 of the Act, the petitioner is entitled to be furnished export book, and denial of the same would render the licence inoperative. It is his case that the purpose of issuing export permit books is to ensure that necessary information is furnished to the market committees, and it is for the respondent to take steps to collect market fee from the purchasers. He contends that even otherwise the respondent has not issued any notice of demand to the petitioner and that the respondent cannot withhold the books, as a device, to exert pressure on the petitioner to pay certain amounts, for which there did not exist any demand, much less liability.

( 5 ) LEARNED standing counsel for the respondent submits that a combined reading of sections 7 and 12 of the Act, conditions of licence prescribed under the rules, and bye-law 24 of the bye-laws makes it obligatory for a licensee to remit the licence fee for the sales that have taken place with him. According to him, the respondent was justified in withholding the books till the petitioner accounted for and paid the market fee, for the transactions under the books, which were issued to it earlier.

( 6 ) THE act is a comprehensive legislation, dealing with the Regulation of purchase and sale of agricultural produce and livestock products; and establishment of markets. Section 12 is the charging section, which empowers the collection of market fee at a specified rate, over the sales and purchases of the notified items in the notified market area. Section 7 provides for grant of licences to the traders and commission agents who undertake sale, purchase, storage, or other connected activities in relation to notified agricultural produce or livestock, in the area. The form of licence is prescribed under the Rules (form 8 ).

( 7 ) FOR the effective functioning of market committees, bye-laws are also approved. Bye-law 24 thereof provides for issuance of export permit books to the licensees, as well as their corresponding obligations.

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