Market fees can only be levied if agricultural produce is sold or purchased within the notified market area, as per Section 12(1) of the A.P. Markets Act.

COMMON ORDER:

TARLADA RAJASEKHAR RAO, J.

In all these Writ Petitions, the issue involved is one and the same.Hence, they are being disposed of by this common order. The facts narrated in W.P.No.43674 of 2018 are being taken up for disposal of all the Writ Petitions.

2. The petitioners in all these Writ Petitions are aggrieved by the action of the Agricultural Market Committee in collecting the market fee notified commodities as well detaining the vehicles at the point of check- posts for non-payment of fee, inasmuch as it verges on arrogating and assuming the power beyond the authority of law vested in the respondent committees under Section 12(1) of the A.P.(Agricultural Produce and Livestock) Markets Act, 1966, and it openly runs in defiance of settled principles of law as laid down by the Hon’ble Supreme Court and the High Court, besides, it glaringly falls foul of the Memo in 59/23/2015.SO(MKTG.II) dated 08.02.2016 issued by the Principal Secretary, Agricultural and Co-operation Department.

3. The case of the petitioners is that though there is no sale or purchase within the area of market committee, the market committee is harassing and directing the petitioners to pay the market fee again and again under Section 12(1) of the A.P.(Agricultural Produce and Livestock) Markets Act, 1966, despite the amendment by the State with effect from 09.10.2015. For the sake of facility, Section 12(1) of the A.P.(Agricultural Produce and Livestock) Markets Act, 1966, which is relevant, is extracted hereunder:

"12. Levy of fees by the market committees by the purchaser of the notified agricultural produce, livestock or products of live stock.

1-A The Market Fee under sub-section (1) shall be single point levy on notified Agricultural Produce, Live stock and Product of Live stock. If the Market Fee is levied and collected by any Market Committee in the State, and such Agricultural Produce, Live stock and Product of live stock sold or processed within the State are exported outside the State, it shall be exempted from the levy of Market Fee subject to production of evidence of payment of Market Fee as may be prescribed."

4. The said amendment came into effect in pursuance of the order of this Court in Modern Nutrition Company, Hyd. Vs. Agricultural Market Committee and Ors., [1996 (4) ALD 801 (D.B.)], the composite High Court of Andhra Pradesh, wherein it is held at paragraph Nos.11 to 14 as hereunder:

"11. Adverting to the provision of Section 12 of the Act, we have no manner of doubt that in the case of the writ petitioner - appellant, respondents have acted rather carelessly and assumed beyond the scope of Section 12 of the Act, that any goods purchased or sold anywhere but brought within the market area are liable to payment of fee. The condition for the payment of fee is that the agricultural produce, livestock or products of livestock are purchased or sold in the notified market area. Explanation -I of Section 12 of the Act can only give rise to a presumption that such articles falling under the definition of 'agricultural produce', etc., which are subjected to levy under Section 12, if found within the limits of the notified market area or seen being taken out of the notified market area, are liable to fee, but it shall be open to the owner of the goods concerned to dispute the claim and once he disputed/disputes the claim, unless there is an enquiry, the presumption would not entitle the market committee concerned to realise the fee.

12. Our attention has been drawn, however, to Rule 75 of the Andhra Pradesh (Agricultural Produce and Livestock) Markets Rules, which reads as follows:

"75. Check-post:- (1) No person shall transport any notified agricultural produce, livestock, or products of livestock purchased or sold in the notified market area, from the limits thereof, except on production of the receipt for the payment of prescribed fees in respect of such notified agricultural produce, livestock or products of livestock to the market comm