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2002 (3) TMI 708 - SC - VAT and Sales TaxWhether sale of rice by the rice millers to the State Government or its agent by virtue of Procurement Order is a sale for the purpose of section 65(2) of the Marketing Act? When once paddy is subjected to levy of market fee, whether on sale of rice, market fee can be levied or not? Whether the rice which is a processing commodity from a paddy will be subjected to market fee or not? Whether the provisions of the Marketing Act are repugnant to the Control Order and if so what is its effect? Held that:- Appeal dismissed. The Karnataka Rice Procurement (Levy) Order, 1984, has been issued with the object of procurement of rice is to see that rice is made available for public distribution and no artificial scarcity is created and the people do not suffer because of hoarding by certain unreasonable elements. A notification similar to the one issued by the State of Bihar exempting the millers from the provisions similar to the provisions of section 15 of the Bihar Agricultural Produce Markets Act, 1960 has not been issued in the present case. No hesitation in concluding that the entire field of regulating the purchase and sale of paddy or the rice produced out of the paddy is not covered under the Control Order. The provisions of the Marketing Act do not trench up the field covered by the Control Order. There is no inconsistency between the Control Order and the Marketing Act. They do not cover the same field and therefore the question of any inconsistency, repugnancy or the Marketing Act being ineffectual in terms of section 6 of the Essential Commodities Act in view of the Control Order issued under section 3 of the Essential Commodities Act would not arise
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