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2004 Supreme(Guj) 714

Gujarat High Court
Judgename :B.J.Shethna, SHARAD D.DAVE
SOPARIWALA EXPORTS - Appellant
Versus
STATE OF GUJARAT - Respondent
S.C.A.14786 of 2004
Decided On : 11/04/2004

Advocates Appeared: M.K.VAKHARIA

Headnote:

Gujarat Agricultural Produce Markets Act, 1963 - Section 8 - Constitution of India,1950 - Article 226 – Petitioner exports a partnership firm has filed this petition through its partner and Power of Attorney Holder and prayed that a writ of mandamus or a writ in nature of mandamus or any other appropriate writ order or direction be issued declaring Entry tobacco in Schedule to Gujarat Agricultural Produce Markets - As unconstitutional and respondents their agents and servants be restrained from taking any action against petitioner its agents servants and officers for not obtaining license as required Act of or for not making payment of market fees or for not complying with any other regulations in said Act - Petitioner that Government of Gujarat in exercise of its powers Act of had established exclusive market yards for regulation of sale and purchase of tobacco - Thereafter by notification published on State Government had abolished this market area by placing tobacco as regulated item within competence and jurisdiction of Market Committees mentioned in said notification - Thereupon market committees named in said notification were insisting for license and payment of market fees provisions of said Act but petitioner was resisting directions of market committees as it was carrying business of exporting tobacco without license from market committees and without payment of market fees notification was challenged by petitioner along with others before this Court by way of Special Civil Application which has been admitted by this Court and pending for final disposal – Held, In light of above now we will consider unreported judgment of Honble Supreme Court in Pan Masalas case - From the bare reading of said judgment find that facts of that case were totally different - In that case petitioners before Apex Court were manufacturers of different States like State of Maharashtra State of Andhra Pradesh State of Tamil Nadu and State of Goa - They had challenged respective notifications issued by State Governments placing ban on manufacturing sale storage distribution of pan masala containing tobacco in interest of public health - Challenge to those four notifications was on following grounds Act vests power to declare a substance as injurious to health only with Central Government of Act and no power is vested with state Government - Each of manufacturers has been issued a license to manufacture banned product by Central Government provisions of Act - As long as conditions stipulated in license are fulfilled and there is no violation of terms of license or provisions of concerned statute it is not open to State Government by any administrative order to prohibit manufacture of concerned product undertaken a license issued by Central Government – Petition dismissed (Para 6)

B. J. SHETHNA, J.

( 1 ) ). The petitioner - Sopariwala Exports, a partnership firm has filed this petition through its partner and Power of Attorney Holder Mr. Yunus Abdul Gaffar Fazlani under Article 226 of the Constitution of India and prayed that a writ of mandamus or a writ in the nature of mandamus or any other appropriate writ, order or direction be issued declaring Entry `tobacco in the Schedule to the Gujarat Agricultural Produce Markets Act, 1963 (for short "act of 1963") as unconstitutional and the respondents, their agents and servants be restrained from taking any action against the petitioner, its agents, servants and officers for not obtaining licence as required under Section 8 of the Act of 1963, or for not making payment of market fees or for not complying with any other regulations in the said Act.

( 2 ) IT is the case of the petitioner that the Government of Gujarat, in exercise of its powers under the Act of 1963, had established 10 exclusive market yards for regulation of sale and purchase of tobacco. Thereafter, by notification published on 28. 03. 1997, the State Government had abolished this market area by placing "tobacco" as regulated item within the competence and jurisdiction of 30 Market Committees mentioned in the said notification (Annexure `a ). Thereupon, market committees named in the said notification were insisting for licence and payment of market fees under the provisions of the said Act but the petitioner was resisting the directions of the market committees, as, it was carrying business of exporting `tobacco, without licence from the market committees and without payment of market fees. The notification dated 28. 03. 1997 (Annexure `a) was challenged by the petitioner along with others before this Court by way of Special Civil Application No. 5418 of 1998 which has been admitted by this Court and pending for final disposal. During the pendency of that writ petition, the parliament enacted "the Cigarettes and Other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply and Distribution) Act, 2003" (for short Act of 2003) coming into force with effect from 01. 05. 2004. According to the petitioner, with the Act of 2003 coming into force with effect from 01. 05. 2004, the petitioner is not required to pay any licence fees to the market committees, due to the repugnancy between the Act of 2003 and the Act of 1963 and the provisions of the Act of 1963 including `tobacco in the definition of `narcotics in the Schedule is ultra vires and unconstitutional.

( 3 ) ). Whether there is a repugnancy between the new Central Act of 2003 and the State Act of 1963 or not ? For deciding this question, relevant provisions with the object of the State Act are required to be considered by us. From the object and reasons of Gujarat Act 17 of 1985, it clearly appears that in order to ensure proper planning and development of agricultural produce markets all over the State in a balanced manner as also to provide among other things, technical, financial and legal assistance through market committees, it was proposed to establish a statutory body under the Act of 1963. The Central Government which extends financial assistance under the central scheme for development of regulated market yards and sub-market yards had also made a suggestion for establishment of such statutory body in the State. Thus the sole purpose or object of the Act is to ensure proper planning and development of agricultural produce markets all over the State in a balanced manner. Coming to the provisions of the State Act of 1963, "agricultural produce" is defined under Section 2 (i) of the said Act which is as under :"2 (I) "agricultural produce" means all produce, whether processed or not, of agriculture, horticulture and animal husbandry, specified in the Schedule. "`tobacco is included under head (v) "narcotics" of the `schedule to Section 2 (i) of the said Act.

( 4 ) LEARNED senior advocate







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