Back
1985 Supreme(Cal) 379
High Court Of Calcutta
M.G. Mukherji, J.
Cashewnut Processing Enterprise : Appellant
Versus
State Of West Bengal : Respondent
Decided On : Sep 23,1985
Arun Prakash Sarkar, Bholanath Bhattacharya, Sanlosh Nath Sen, Sitaram Banerji,
Processed cashew nuts, which have undergone significant processing, are not forest produce within the meaning of the Indian Forest Act, 1927, and the West Bengal Forest Produce Transit Rules, 1959.
Headnote:
FOREST PRODUCE - SHELLING, STRIPPING, DRYING, AND PACKAGING OF CASHEWNUTS - PROCESSING - TRANSIT PASS - INDIAN FOREST ACT, 1927 - SECTION 2 (4) (B) - WEST BENGAL FOREST PRODUCE TRANSIT RULES, 1959 - INTERPRETATION.
Fact of the Case:
The petitioner, a small-scale industry processing cashew nuts, challenged the requirement of a transit pass for the movement of processed cashew nuts, arguing that they were no longer forest produce. The petitioner collected shelled cashew nuts from trees, processed them through various stages, and packaged them for sale as a ready-to-eat snack. The Forest Department contended that processed cashew nuts were forest produce brought from a forest and required a transit pass under the Indian Forest Act, 1927, and the West Bengal Forest Produce Transit Rules, 1959.
Finding of the Court:
The court held that processed cashew nuts, which had undergone shelling, stripping, drying, and packaging, were not forest produce within the meaning of the Indian Forest Act, 1927, and the West Bengal Forest Produce Transit Rules, 1959. The court found that the processing transformed the raw cashew nuts into a new product, distinct from the original forest produce. The court also noted that the transit pass requirement was intended to regulate the movement of forest produce, but processed cashew nuts were no longer considered forest produce.
Issues: 1. Whether processed cashew nuts are forest produce under the Indian Forest Act, 1927, and the West Bengal Forest Produce Transit Rules, 1959? 2. Whether the requirement of a transit pass for the movement of processed cashew nuts is a reasonable restriction on trade and commerce?
Ratio Decidendi: 1. The court interpreted the definition of forest produce in section 2 (4) (b) of the Indian Forest Act, 1927, to include trees, leaves, flowers, fruits, and other parts or produce of trees found in or brought from a forest. The court held that processed cashew nuts, which had undergone significant processing, were no longer forest produce as they were not in the same state as when they were found in or brought from a forest. 2. The court held that the requirement of a transit pass for the movement of processed cashew nuts was not a reasonable restriction on trade and commerce. The court found that the processing transformed the raw cashew nuts into a new product, distinct from the original forest produce, and that the transit pass requirement was not necessary to regulate the movement of processed cashew nuts.
Final Decision: The court made the rule absolute in part, holding that processed cashew nuts did not require a transit pass for transportation. The court rejected the petitioner's claim for a refund of the compounding fee paid for the alleged offense, as the petitioner's representative had pleaded guilty and agreed to the compounding.
1. THE petitioner is a concern running a small scale industry of processing of Cashewnuts. It collects the shelled Cashewnut fruits from the trees direct. The processing is done in different stages :
(i) Roasting of the Shelled speeds fruits
(ii) Breaking of the coverings i.e. shells and bringing out of food materials
(iii) Drying up the food materials in drying chambers
(iv) Pilling or strip) ping off the dried up nuts (food material)
(v) Treating the stripped off inner nuts (food 'materials), at times with salt
(vi) Sorting and grading the; inner nuts (food materials) as produced
(vii) Packaging. It is contended that the [processing, requires 4 to 6 days time in the factory.
2. ON the completion of the processing, "kaju Badam", as a food materials is produced, which according to the petitioner is a ready made food for human consumption and the same is pat to market for sale as such. It is contended that the processed Kaju Badam is an article completely different from the shelled Cashewnut seed fruits as found on trees before or at the time of collection and prior to commencement of processing.
The case of the petitioner is that as a processed article of food "kaju Badam" ceases to be a forest produce within the meaning of section 2 (4) (b) of the Indian Forest Act 1927.
3. THE Directorate of Forest of the State Government from time to time issues notices inviting tender's for collection of cashewnut seeds and fruits from the cashewnut trees on the forests. The stipulation is that collection of fruits in shells should be made from the trees without causing any damage to the trees and their branches, export fee will have to be paid at the current rate and movement of cashewnuts in seeds and fruits, from forest depots to other area by trucks and other means of conveyance will have to be covered by Transit pass issued by the Forest Officer.
4. THERE are prescribed rules for movement of forest produce and for issuance of Transit pass, known as The West Bengal Forest Produce Transit Rules 1959. In respect of timber and other forest produce from khasmahal forests, passes are issued by the District Forest Officer and/or any other Officer duly authorised on this behalf, on the production of a certificate of origin issued by the Khasmahal Officer. There are provisions for imposition of fees for transit passes in respect of different items of forest produce moved from districts on such rates prescribed by Conservator of Forest from time to time.
It is the contention of the petitioner that neither in the Tender Notice about collection of cashewnuts from trees in the Khasmahal forests nor in the Act or in the Rules, there is any specific or implied provision for the necessity of any transit pass for the movement of processed cashewnuts which are ready marketable food products.
5. THE petitioner firm, after processing the shelled cashewnut seed fruits and having their transformed into a ready marketable food product as a snack has to transport them to different markets for sale to public as food. They are either transhipped by rail or by road transport. .
6. THE Railway authorities; at Jhargram Railway Station refused to book such finished marketable cashewnuts without clearance certificate from the Forest Officer, Jhargram. On 9.5.1977 contending that no movement permit is necessary for movement of dry finished Kaju Badam the petitioner requested the Divisional Forest Officer, West Midnapore Division to inform the Railway Authorities about the matter. In reply by Memo No. 3588/18-4 dated 24.5.1977 the petitioner was informed by the Divisional Forest Officer that transit pass would be necessary. Copy of the same is annexure 'i' to the writ application. The petitioner was therefore requested to apply for "transit pass" through the Range Officer, Jhargram Range along with the requisite documents, for necessary transit pass and the copy of the letter was forwarded to the Range Officer, Jhargram Range, for information and necessary action. Th
