IMPORTANT POINTS
(1) It is obligation of importer to realise market fee from purchaser and pay the same to Market Committee.
(2) It is sale within market area that attracts levy of market fee and not first purchase that was outside market area.

JUDGMENT :

R. SUBHASH REDDY, J.

1. Leave granted.

2. This appeal is filed aggrieved by the judgment and order dated 11.01.2013 passed in Writ Appeal No.18000 of 2011, dismissing the intra-court appeal filed by the appellant herein by confirming the order of the learned Single Judge allowing the Writ Petition in W.P. No.11816 of 2009 on 22.08.2011, filed by the respondent herein.

3. The respondent herein is a trader engaged in the business of selling cleaned and processed spices in the name and style of M/s. Selva Foods within the market area of the appellant. They buy spices like turmeric, chilli, coriander, methi and mustard seeds etc., from the market areas of various Agricultural Market Committees within the State of Karnataka and they also import such spices from outside the State. After importing such agricultural produce, they undertake cleaning and processing of the spices and sell the processed items within the market area of the appellant.

4. During the year 2008, authorities of the Market Committee have inspected the records of the respondent and found that respondent had purchased methi and mustard seeds from outside the State of Karnataka and after importing they sold the processed goods within the market area of the appellant and has not paid the market fee. When At first instance, order dated 12.08.2008 was passed by the appellant-APMC cancelling the licence of the respondent on the ground that the market fee of Rs.28,422/-and the penalty amount was not paid. When such order was questioned in Writ Petition No.11211 of 2008 the High Court has allowed the writ petition on the ground that the respondent was not given proper opportunity and remitted the matter back for fresh consideration, to the appellant. Further it was observed, the amount of Rs.28422/-which was paid pursuant to interim order would be subject to decision of the authority.

5. Subsequently after giving opportunity, order dated 24.03.2009 was passed confirming the earlier demand and directed the payment of Rs.85,266/- which was payable out of the total demand of Rs.1,13,688/-. Questioning such demand again writ petition was filed in the High Court in W.P. No.11816 of 2009 which is allowed by the learned Single Judge of the High court as against which the appellant Market Committee has preferred intra-court appeal in Writ Appeal No.18000 of 2011 which is dismissed by the impugned judgment and order dated 11.01.2013. As against the same this appeal is preferred.

6. We have heard Dr. Nanda Kishore, learned counsel for the appellant and Mr. Haris Beeran, learned counsel for the respondent.

7. Having heard the learned counsel for the parties, we have perused the impugned judgment and other material placed on record. Before we deal with the rival contentions of both sides, we deem it appropriate to refer to the relevant provisions of the Karnataka Agricultural Produce Marketing (Regulation and Development) Act of 1966. Section 65 of the Act reads as under:

“65. Levy of market fees:-

(2) The market committee shall levy and collect market fees from every buyer in respect of agricultural produce bought by such buyer in the market area, at such rate as may be specified in the bye-laws which shall not be more than two rupees per one hundred rupees of the value of such produce bought except in case of livestock where the market fee shall not be more than five rupees per head of cattle other than sheep or goat, and in the case of sheep or goat such fee shall not be more than one rupee per head in such manner and at such times as may be specified in the bye-laws:

Provided that in the case of any co operative society doing business in agricultural produce within a market yard, market fee shall be levied and collected at the rate of eighty per cent of the market fee payable under this Act:

Provided further that, if on any agricultural produce market fee has already been levied and collected under sub-section (2) in any market area within the State and such agricultural produce