Summary
Ghee is a product of livestock because it is derived from milk, and the Act permits such derivative products to be notified. The challenged 1994 notification was under Section 4, for which Section 3’s draft-notification and objection procedure did not apply; market fees remained payable, with two years allowed for payment in four instalments.
Issues
- Could ghee be notified as a product of livestock under the Andhra Pradesh Markets Act, 1966?
- Did the 1994 notification require the draft-notification and objection procedure under Section 3?
- Were the producers liable for market fees for the period before the High Court judgment?
Provisions considered
- Sections 2(v) and 2(xv), Andhra Pradesh (Agricultural Produce and Livestock) Markets Act, 1966Ghee, derived from milk produced by livestock, may be notified as a product of livestock and regulated under the Act. (¶¶ 2, 10)
- Sections 3 and 4, Andhra Pradesh (Agricultural Produce and Livestock) Markets Act, 1966The 1994 notification was made under Section 4 to declare a notified market area for a product already notified under Section 3. The draft notification and opportunity to object required by Section 3 were not required for this Section 4 notification. (¶¶ 3, 4, 5, 6, 7, 11)
- Section 12(1), Andhra Pradesh (Agricultural Produce and Livestock) Markets Act, 1966Market Committees may levy a fee on notified products bought or sold in a notified market area. The appellants had used the facilities and remained liable for the accrued fees. (¶¶ 12, 13)
Held
- Ghee is a product of livestock within Sections 2(v) and 2(xv): it is derived from milk, itself a product of cows or buffaloes, and the processing of milk into ghee does not remove it from the statutory category. (¶¶ 2, 10)
- The challenged 1994 notification was issued under Section 4 to regulate a product already notified under Section 3. The draft-notification and objection procedure mandated for Section 3 did not apply to it; the notification was valid. (¶¶ 3, 4, 5, 6, 11)
- The appellants who used the Market Committees’ facilities were liable to pay the accrued market fees for the period before the High Court judgment. To address the hardship of the accumulated amount, they were allowed two years to pay in four equal instalments. (¶¶ 12, 13)
Result
Appeals dismissed and the Full Bench decision upholding the 1994 notification affirmed. Interim restraints on collection of market fees were vacated; accrued fees may be paid in four equal instalments over two years.