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2018 (11) TMI 212 - RAJASTHAN HIGH COURTLevy of market fee - power of respondent-State to charge tax/cess payable under the provisions of Rajasthan Agriculture Produce Marketing Act, 1961 - Validity of levy after promulgation of Goods and services tax (GST) - whether timber (Imarti Lakadi) is an agricultural produce - their shops and godowns etc. outside the Mandi yard and they do not avail any of the facilities or services provided by the respondent - Mandi. Held that:- It is a settled proposition of law that the State can levy market fee under the relevant provisions of a statute, enacted in exercise of powers available to it under Entry 66 of the second list of the VIIth Schedule. It has also been settled by Hon’ble the Supreme Court in the case of Sreenivasa General Traders & Ors. vs. State of Andhra Pradesh & Ors., [1983 (9) TMI 315 - SUPREME COURT] that irrespective of the fact, whether a dealer carries on business or trade in the market yard or not, the agriculture produce brought by such dealer in the notified area is exigible to market fee, leviable under the Act. Levy of cess/fee on timber - Held that:- Suffice it to observe that this stand too is totally contrary to the provisions contained in the Act of 1961. Section 2 (i) of the Act of 1961, unequivocally provides that items mentioned in the Schedule shall be treated to be an agricultural produce. Product ‘timber’ has been specifically enumerated at Serial No.9 of Schedule appended with the Act of 1961. This being the fact situation, the timber or ‘Imarti Lakadi’ is unquestionably an agricultural produce, exigible to Mandi fee under the Act of 1961. Moving on to the last point of the petitioner that after promulgation of Goods and Service Tax, the levy of cess under the Act of 1961 cannot continue; we are constrained to observe that even this argument is misconceived. - By a combined effect of Section 174 of CGST Act and RGST Act, the levy governed by only those enactments have been abolished, which have been enlisted in said sections. The market fee leviable under the Act of 1961 neither finds mention in any of the repeal and saving provisions, nor can it be so done, as the market fee is leviable under a separate enactment under the State’s power to legislate under Entry 66 of the List-II of the VIIth Schedule. Petition dismissed.
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