TaxTMI 
TaxTMI 
1990 (3) TMI 68
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....t Petition No. 999, Writ Petition No. 1574, Writ Petition No. 3204, Writ Petition No. 7080, Writ Petition No. 3482, Writ Petition No. 3483 of 1982 Dr. L.M. Singhvi, Senior Advocate (B.D. Sharma, Shri Narain, Sandeep Narain, Shrid Rizvi and D.K. Singh, Advocates, with him), for the respondents.- D.N. Dwivedi, Senior Advocate (Sarwa Mitter, Advocate, with him), for the petitioners- JUDGMENT The judgment of the court was delivered by SAHAI J.-The validity of the Rajasthan Agricultural Produce Marketing Act, 1961 (for brevity, "the Act"), levying market fee on sale and purchase of agricultural produce in a market-yard or sub-market-yard was challenged by dealers for lack of legislative competence, violation of articles 14, 1....
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....of List I of Schedule VII, the State Legislature was precluded from legislating on it. Its inclusion in the Schedule was also assailed as it being a mill or factory produce, it could not be deemed to be agricultural produce which is basically confined to produce of, or from, soil. Sugar is one of the items which was included in the Schedule to the Act, statutorily, right from its inception. Such inclusion is found in Maharashtra, Gujarat, West Bengal, Bihar, etc. Whether it was subsequently deleted or re-included or re-grouped or it was added later was immaterial as section 40 of the Act empowered the State Government to amend or include any item in the Schedule of agricultural produce. Existence of such delegated power is a usual feature ....
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..... To say, therefore, that sugar being produced in mills or factories could not be deemed to be agricultural produce is both against the statutory language and judicial interpretation of similar provisions of the Act in the statutes of other States. Rice or dal produced in mills have been held to be agricultural produce in Ramesh Chandra v. State of U. P. [1980] 3 SCR 104 and State of U. P. (Krishi Utpadan Mandi Samiti) V. Ganga Dal Mill and Co. [1985] 1 SCR 787. Even in Halsbury's Laws of England, volume 1, the word "agricultural produce", for purposes of agricultural marketing schemes, is understood as, "including any product of agriculture or horticulture and any article of food or drink, wholly or partly manufactured or derived from any ....