JUDGMENT

Ritu Bahri, J. (Oral)

The present petition has been filed seeking a writ of certiorari for quashing of order dated 29.05.2007 (P-2) and notice dated 25.04.2008 (P-4) issued by respondent no. 3.

2. Brief facts of the case are that petitioner-unit is engaged in the processing of agriculture products such like wheat, maze etc. for manufacturing wheat flour and its secondary products. The petitioner unit got registered as small scale unit with the Director of Industries, Punjab. As per certificate issued by the Directorate of Industries, the unit is producing wheat flour, mill atta, suzi and bran etc. (The Petitioner unit also obtained license in Form-B from the concerned Secretary of Respondent Market Committee which is valid. As per the license, a dealer as defined under the Punjab Agricultural Produce markets Act, 1961 (hereinafter referred as the 'Act 1961') is authorized to purchase, sale, store and to do its processing).

3. The petitioner/mill had been purchasing wheat from the state of Punjab and outside the state of Punjab to meet its requirements for producing the finish goods, since inception. The registration of the unit was necessary earlier but no license was thereafter required for running the processing unit in the State of Punjab to install and run flour mill.

4. The Petitioner was purchasing wheat from the area of Market Committee, Banur and its surroundings and from outside the state of Punjab as well. Thereafter, the wheat purchased is taken to the mill premises for processing the same for manufacturing wheat flour and its secondary products.

5. The petitioner-Unit is governed by the provisions of Act 1961, the dealers and licensees are defined in Section 2 (f) and 2 (hh) respectively. The State of Punjab for the implementation of the provisions of the Act framed the Punjab Agricultural Produce Markets (General) Rules, 1962 (for short 'Rules 1962'). Rule 29 of Rules 1962 speaks about the levy and collection of fees on sale and purchase of market produce whereas Rule 30 speaks about the exemption for payment of fees. Rule 30 of Rules 1962 reads as under:-

"30. Exemption from payment of fees. (1) No market fee shall be levied on the sale or purchase of any Agricultural produce manufactured or extracted from the agricultural produce in respect of which such fee has already been paid in the same notified market area or in any other notified market area within the state.

(1-A) XXXXX

(1-B) XXXXX

(2) The dealer concerned in the sale or purchase of any quantity of agricultural produce from which he manufactures or extracts any other agricultural produce shall maintain in Form L true and correct accounts of the sale or purchase, as the case may be, of the said agricultural produce and of any agricultural produce manufactured or extracted from it. (3) to (12) XXXXX

(13) (i) No market fee shall be levied on wheat and maize purchased by the wheat and maize processing industries for manufacture of products therefrom such as wheat flour and its secondary /territory products such as bread, biscuits, pasta, noodles etc. starch and its delvalives; gluten etc. in the State of Punjab;

(ii) & (iii) XXXXXX"

6. Vide notification dated 11.09.2001, Sub Rule 13 was added (P- 1). After issuance of the notification dated 11.09.2001, respondent No. 2 had written letter dated 18.09.2001 to all the Market Committees in the State of Punjab informing them that the Government had decided not to levy any market fee on wheat and maize which were to be used by processing units in the State of Punjab.

7. Despite the above notification dated 11.09.2001, the Market Committee sent a notice dated 29.05.2007 demanding necessary market fees and RDF to the Market Committee,