CWP-8548-2008

1

IN THE HIGH COURT OF PUNJAB AND HARYANA AT

CHANDIGARH

CWP-8548-2008

Date of decision:- 08.02.2023

M/s Amar Flour Mills

....Petitioner

vs.

State of Punjab and others

...Respondents

CORAM: HON'BLE MS. JUSTICE RITU BAHRI

HON'BLE MRS. JUSTICE MANISHA BATRA

Present:

Mr. Ashish Gupta, Advocate

for the petitioner.

Mr. Alankar Narula, AAG, Punjab

Mr. Sanjeev Sharma, Advocate

for respondent Nos. 2 and 3.

***

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

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

GAURAV ARORA

2023.02.22 16:20

I attest to the accuracy and

integrity of this document

CWP-8548-2008

2

'Act 1961') is authorized to purchase, sale, store and to do its processing).

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.

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.

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

CWP-8548-2008

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(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”

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 Punja