Market fee on agricultural produce applies only when the produce is brought in and used for processing, not mere manufacture.

Market fee under section 19 of the M.P. Krishi Upaj Mandi Adhiniyam, 1972 arises only when notified agricultural produce is brought into the market area and used for processing. The Court distinguished processing from manufacture, holding that processing involves treatment of the produce before final consumption, while manufacture creates a commercially distinct commodity. Use of the produce merely as a raw material in manufacture does not satisfy the statutory requirement of processing, so the levy cannot be extended on that basis. Market fee was therefore not payable on produce brought into the market area for manufacture without statutory processing.

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Issues: Whether market fee under section 19 of the M.P. Krishi Upaj Mandi Adhiniyam, 1972 is leviable on notified agricultural produce brought into the market area for use in manufacture, where the produce is not used for processing in the statutory sense.

Analysis: Section 19 levies market fee on notified agricultural produce brought into the market area and used for processing. The statutory definition of "processing" in section 2(mmm) contemplates treatment to which agricultural produce is subjected before final consumption. The distinction between processing and manufacture is material: manufacture involves emergence of a commercially distinct new commodity, while processing may involve treatment or a series of operations without necessarily creating a new commercial article. On the plain wording of section 19(1)(ii), both elements must coexist, namely bringing the produce into the market area and its use for processing. The provision cannot be extended merely because the produce is used as a raw material in manufacturing.

Conclusion: Market fee is not leviable where the notified agricultural produce is brought into the market area for use as raw material in manufacture and not for processing as required by section 19(1)(ii). The appellant succeeds.

Ratio Decidendi: Liability under the levy provision arises only when the notified agricultural produce is both brought into the market area and used for processing; use in manufacture, without statutory processing, does not attract market fee.

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