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1976 Supreme(Pat) 259

PATNA HIGH COURT
K.B.N. SINGH, C.J. & S. ALI AHMAD, JJ.
M/s Sahu Mills & ors. - Peti.
Vs.
The State of Bihar & ors. - Respts.
C.W.J.C. No. 1893 of 1975
Decided On : 22.12.76

Advocates Appeared:
For the petitioners: Mr. G.C. Bharuka.
For the Respondents: Mr. Ram Balak Mahato (G.P. IV) Mr. Harendra Prasad and Mr. S. Rafat Alam.

Headnote:Bihar Agriculture Produce Market Act, 1960, Sec. 2(a) and Central Excise & Salt Act, 1944, First Schedule-Tobacco-Meaning of - Stalk of tobacco whether part of tobacco-In the Schedule of the Act, only tobacco mentioned as notified agricultural produce under head 'Narcotics'-Stalk & dust of the tobacco plant having containing nicotine forms part of tobacco as defined under The Central Excise & Salt Act, 1944-A trader dealing in tobacco is required to take license under the Act-29 STC 654 referred. (Paras 6 & 11)

K. B. N. Singh, C. J.

In this writ application the three petitioners who are partnership and proprietorship firms, carrying on business within the Dalsinghsarai Police Station in the District of Samastipur have prayed for quashing three notices dated the 4th September 1975 issued by the Secretary of the Agricultural Produce Market Committee Dalsinghsarai, Samastipur (Respondent No.3) rejecting their representations holding that the stalk of tobacco plants also falls within "tobacco" a scheduled article and asking them to obtain licence and start making payment of the market fees under the Bihar Agriculture Produce Markets Act, 1960 (hereinafter referred to as the Act.)

2. The short facts, necessary for the disposal of this application need be stated. The petitioner's case is that they purchase stalks of tobacco, grind them and sell the same after grinding as dust, to different buyers outside the State of Bihar and for carrying on the said business a whole-sale licence under the provisions of the Central Excise and Salt Act, 1944 and the Rules framed thereunder has been granted to each of them by the licensing authorities concerned and the petitioners carryon the said business in accordance with the provisions of the Central Excise and Salt Act, and under the supervision of the Central Excise Authorities. The Secretary of the Agriculture Produce Market Committee, Dalsinghsarai (Respondent No.3) had been insisting on the petitioners for obtaining licences from the Market Committee for carrying on their aforesaid business, on the ground that stalks of tobacco plants are also one of the agriculture produce. The petitioners represented to the Market Committee that in the Schedule of the Act, only tobacco has been included as one of the agricultural produce for the purpose of the Act, and since the petitioners deal in stalks of tobacco plants and their dust and not tobacco they should not be compelled to obtain licence and subjected to various rigorous of the different provisions of the aforesaid representations. Respondent No.3 by the impugned notice dated the 4th September, 1975 (Annexure 1', 2' and 3') has directed the petitioners to obtain licence, as they are dealing in stalks of tobacco plants, which come under the scheduled article' tobacco as notified agricultural produce.

3. The petitioners contention is that the word "Tobacco" mentioned in the schedule of the Act, will only mean tobacco leaves either processed or unprocessed and in common parlance also it is understood in the same sense, and by no stretch of imagination tobacco stalk or its dust is tobacco and therefore, the direction issued by Respondent No.3 is wholly illegal and without jurisdiction. In support of the argument, reliance has been placed on the provisions of the Central Excise and Salt Act, to show that tobacco has been used to mean tobacco only and whereever necessary stalks have been referred to separately as stalks of tobacco as distinct from tobacco. Their grievance is that if they take out licence under Rule 71 of the Bihar Agricultural Produce Markets Rules, 1962 they will have to abide by the provisions of the Act, and the said Rules, and the sale and purchase of tobacco stalks and dust will have to be made under the direction of the Market Committee by auction or tender as required under section 15 of the Act, and the Rules which in view of the conflicting provisions of the Central Excise and Salt Act, Is impossible of compliance. The petitioners have also stated that under the Central Excise Rules they have to purchase stalks of tobacco even by going to the authorised cultivators houses and therefore the cultivators of tobacco can never avail of the facilities of the Market Committee because under the Central Act, they can neither come to the market proper or the market yard or sub-yard for sale nor they can enjoy the so-caned facilities likely to be provided by the Market Committee. It is also averred that the impugned notices (Annexures 1, 2, and
























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