Market fee levy fails where agricultural produce is sold outside the market area and never physically enters it.

Market fee under section 17(iii)(b) of the U.P. Krishi Utpadan Mandi Adhiniyam was held not leviable where the agricultural produce was never physically brought into the market area and the sale was completed at the port outside that area. The charging provision applies only to sales of specified produce within the market area, and the statutory scheme assumes physical presence of the goods in that area. A mere agreement at the trader's office does not attract the levy when the goods were purchased outside Uttar Pradesh, sent directly to the ports, and sold only on loading and issuance of the bill of lading.

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Issues: Whether market fee under section 17(iii)(b) of the U.P. Krishi Utpadan Mandi Adhiniyam, 1964 could be levied when the agricultural produce was not physically brought into the market area and the sale was completed only at the port outside the market area.

Analysis: The charging provision permits levy of market fee only on transactions of sale of specified agricultural produce in the market area. The statutory scheme, including the explanation to section 17(iii)(b), proceeds on the basis that the produce is physically present in the market area and is taken out or proposed to be taken out. A mere agreement entered into at the trader's office does not by itself attract the levy if the goods were never brought into the market area and the concluded sale took place elsewhere. On the admitted facts, the rice was purchased outside Uttar Pradesh and was directly sent to the ports, where the sale was completed on loading and issuance of the bill of lading.

Conclusion: Market fee was not leviable, because there was no sale of the agricultural produce within the market area of Ghaziabad.

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