TMI Blog2008 (4) TMI 802X X X X Extracts X X X X X X X X Extracts X X X X ..... le appended thereto such as sugar, dry fruits, edible oils and vanaspati to the Schedule of the Act. Appellant No.1, Market Committee, started collecting market fee as also supervision charges on all notified agricultural produces marketed on wholesale basis. The wholesale market in respect of condiments, spices, dry fruits etc. was shifted from Greater Bombay to New Bombay on and from 1.1.1991 where a huge market had been constructed by the appellants. 3. Respondents allegedly, despite the applicability of the provisions of the said Act as also the Notification dated 25.9.1987, did not get itself registered thereunder contending that 'Vanaspati' had not been included in the Schedule appended thereto. Some of the trad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s as admittedly the respondent no.1 has not established any other collection centres or subsidiary markets by exercising powers under Section 5 and Section 30A of the Act. We are, therefore, of the considered view that the respondent No.1- Committee has no powers to cause recovery of supervision charges from the petitioners as at present and the impugned orders to that extent are unsustainable. In regard to the payment of interest, it was held : We are afraid Clause (y) below Rule 120 does not come to the rescue of the Market Committee in support of its case that it has the power to charge interest varying from 12% to 21% on the delayed dues of market fees and supervision charges under bye-law No.14(A). Section 31 as well ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fee and supervision charges stand on different footings. Whereas market fee is payable on the transactions carried out in the market area, the power to realize the supervision charges is vested in the State. For the said purpose, it has to issue a general or special order. Staff must be appointed by the State for the purpose of carrying out supervision of the market areas. Only when the pre-requisites contained in Section 34A of the Act are fulfilled, the question of recovery of such charges from the person purchasing such produce in such market or market area would arise. The costs of supervision is to be calculated by the Market Committee in such a manner so as to enable it to levy the said fee under Section 31. Sub-section (2) of Sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to recover the charges for the supervisory staff employed at the expenses of a section of the industry is not a general power. It is provided for specifically in terms of the Act. When the statute mandates that the cost of supervision would be borne by the licensee, it does not constitute levy of tax. It may be a part of contract. It may have to be paid as a liability to comply with the provisions of the statute and statutory Rules validly made. The cost has to be determined. It may have to be apportioned. It cannot be levied or calculated in such a manner so as to cause unjust enrichment in favour of the State. 12. The quantum of recovery, however, need not be based on mathematical exactitude as such cost is levied having r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of equivalence applies. The basis of a fee or a compensatory tax is the same. The main basis of a fee or a compensatory tax is the quantifiable and measurable benefit. In the case of a tax, even if there is any benefit, the same is incidental to the government action and even if such benefit results from the government action, the same is not measurable. Under the principle of equivalence, as applicable to a fee or a compensatory tax, there is an indication of a quantifiable data, namely, a benefit which is measurable. 14. The principle of equivalence, therefore, is the foundation for levy of a fee. It must be held to be the foundation of a statutory charge like supervisory charges. It was for the State to prove it. Once t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
