Hyderabad High Court orders Andhra Pradesh not to tax farm produce twice

Hyderabad: The Hyderabad High Court has ruled that agricultural produce, livestock and products of livestock that are carried by any means and entering the area of a market committee, cannot be told to pay market fees a second time in AP.

Justice A. Ramalingeswara Rao was disposing a petition by rice millers challenging the action of agricultural market committee authorities demanding market fee on rice when market fees was paid on paddy in the same market area.

They told the court that they bought paddy from growers and traders and after converting it into rice, they sell it to traders. While buying the paddy the authorities levy the market committee fee on paddy and they are again demanding the fee while selling their rice in the same area within the jurisdiction of the same committee.

They contended that the action of the authorities was contrary to Section 12 of the AP (Agricultural Produce and Livestock) Markets Act, 1966.

The judge found that paddy, rice, wheat, maize, bajra, cotton seed, sunflower, safflower and jowar are specified in Schedule-II of the Act and those products sold within the limits of the notified market area or yard, are liable to levy of market fee.

The judge said that the products that are specified in Schedule II, for which payment of market fee was made in a market committee area, shall not be again subjected to payment of market fee in any other committee within the state, if proof of payment is furnished to authorities.

The judge ruled that even at checkposts, the same procedure has to be followed and that vehicles cannot be detained.