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        VAT and Sales Tax

        1994 (11) TMI 439 - SC - VAT and Sales Tax

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        Inclusive statutory definition brings cattle within agricultural produce and makes market fee leviable on sale in notified areas. Cattle was held to fall within the Act's inclusive definition of 'agricultural produce' because the Schedule expressly included animal husbandry products. ...
                        Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                          Provisions expressly mentioned in the judgment/order text.

                              Inclusive statutory definition brings cattle within agricultural produce and makes market fee leviable on sale in notified areas.

                              Cattle was held to fall within the Act's inclusive definition of "agricultural produce" because the Schedule expressly included animal husbandry products. The Court said that, once the legislature has clearly listed cattle in the Schedule, the plain statutory language governs and the preamble or ordinary common parlance cannot be used to narrow the definition. As a result, cattle bought or sold in the notified market area was subject to market fee, and the market committee's levy was within jurisdiction.




                              Issues: Whether cattle is an "agricultural produce" under the Bihar Agricultural Produce Markets Act, 1960 and therefore liable to levy of market fee when bought or sold in the notified market area.

                              Analysis: The statutory definition of "agricultural produce" in Section 2(1)(a) is inclusive and expressly covers produce of animal husbandry specified in the Schedule. Cattle is specifically listed in the Schedule under animal husbandry products, and Section 27 authorises levy and collection of market fee on agricultural produce bought or sold in the market area. Once the legislature has expressly brought cattle within the Schedule, the Court cannot question the legislative wisdom or invoke the preamble to narrow the clear and unambiguous language of the provision.

                              Conclusion: Cattle is an agricultural produce within the meaning of the Act and is exigible to market fee; the levy by the market committee was within jurisdiction.

                              Ratio Decidendi: Where a statute uses an inclusive definition and the Schedule expressly specifies an item as agricultural produce, that item is liable to the statutory levy despite ordinary common parlance to the contrary.


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                              ActsIncome Tax
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