{"id":206151,"date":"2018-12-03T16:05:36","date_gmt":"2018-12-03T10:35:36","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=206151"},"modified":"2018-12-04T17:33:06","modified_gmt":"2018-12-04T12:03:06","slug":"mustard-oil-does-not-come-under-the-ambit-of-agricultural-produce-and-thus-cess-cannot-be-levied-on-it-gauhati-hc","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2018\/12\/03\/mustard-oil-does-not-come-under-the-ambit-of-agricultural-produce-and-thus-cess-cannot-be-levied-on-it-gauhati-hc\/","title":{"rendered":"Mustard oil does not come under the ambit of \u2018agricultural produce\u2019 and thus Cess cannot be levied on it: Gauhati HC"},"content":{"rendered":"

Gauhati High Court:<\/strong> A Division Bench comprising of A.S. Bopanna, CJ. and Arup Kumar Goswami, J. interpreted the meaning of \u2018Agricultural Produce\u2019 of Assam Agricultural Produce Market Act, 1972.<\/p>\n

The appellants were levying a cess on Mustard Oil imported from outside the State of Assam which was contended by the respondents to be unjustified and accordingly they sought for a refund of the amount collected by the respondent as cess.<\/p>\n

The appellant here referred to the Section 2(1)(i) of Assam Agricultural Produce Market Act, 1972, which defines \u201cAgricultural Produce\u201d and if interpreted would include agricultural produce and as Mustard Seed was included in the Schedule at entry (IV) then its oil shall also be treated the same. Even \u2018trade\u2019 and \u2018processing\u2019 combines both processed and non-processed product thus bringing it under the ambit of agricultural produce. Alternately the respondent cannot be given the refund ordered as the cess burden was transferred by the respondent upon the end user and hence was unjustified.<\/p>\n

Now the question arose whether Mustard Oil could be subjected to levy of cess without the same being included in the Schedule. It was answered by the case of State of Rajasthan v<\/em>. Rajasthan Agriculture Input Dealer\u2019s Assn., <\/em>(1996) 5 SCC 479<\/a>, according to which cess could only be levied on mustard seed and not on mustard oil as it was not considered as an agricultural produce. Further, regarding the refund, the Court considered it to be unjust enrichment upon the appellant as it was collected from the end user and could not be direct to be repaid to the appellant.<\/p>\n

Accordingly, the appeal was partly allowed.[Assam State Agricultural Marketing Board v. Tinsukia Trading Co. (P) Ltd.,2018 SCC OnLine Gau 1581<\/b><\/a>, decided on 08-11-2018]<\/p>\n","protected":false},"excerpt":{"rendered":"

Gauhati High Court: A Division Bench comprising of A.S. 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Subhash Reddy* and Sanjiv Khanna, JJ., held that where the trader do not dispute the factum of sale within the market area post import, he cannot claim the benefit of the provision exempting market fee where the agricultural produces are imported into\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/03\/MicrosoftTeams-image-107-1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/03\/MicrosoftTeams-image-107-1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/03\/MicrosoftTeams-image-107-1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/03\/MicrosoftTeams-image-107-1.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/03\/MicrosoftTeams-image-107-1.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":235984,"url":"https:\/\/www.scconline.com\/blog\/post\/2020\/09\/18\/lok-sabha-passes-two-bills-aimed-at-transforming-agriculture-in-country-and-raising-farmers-income\/","url_meta":{"origin":206151,"position":4},"title":"Lok Sabha passes two bills aimed at transforming agriculture in country and raising farmers\u2019 income","author":"Bhumika Indulia","date":"September 18, 2020","format":false,"excerpt":"The Farmers' Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020 seeks to provide for the creation of an ecosystem where the farmers and traders enjoy the freedom of choice relating to the sale and purchase of farmers' produce which facilitates remunerative prices through competitive alternative trading channels to promote\u2026","rel":"","context":"In "Legislation Updates"","block_context":{"text":"Legislation Updates","link":"https:\/\/www.scconline.com\/blog\/post\/category\/legislationupdates\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/02\/PARLIAMENT.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/02\/PARLIAMENT.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/02\/PARLIAMENT.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/02\/PARLIAMENT.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/02\/PARLIAMENT.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":316832,"url":"https:\/\/www.scconline.com\/blog\/post\/2024\/03\/13\/ghee-livestock-produc-regulated-ap-agricultural-produce-livestock-markets-act-sc-upholds-andhra-pradesh-hc-judgment\/","url_meta":{"origin":206151,"position":5},"title":"\u2018Ghee\u2019 is a livestock product and can be regulated under AP (Agricultural Produce and Livestock) Markets Act: SC upholds Andhra Pradesh HC Judgment","author":"Apoorva","date":"March 13, 2024","format":false,"excerpt":"Supreme Court said that the argument that \u201cghee\u201d is not a product of livestock is baseless and bereft of any logic, as Cows and buffalos are the livestock. 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