M/S GUJARAT AMBUJA EXPORTS LTD &ANR. versus STATE OF UTTARAKHAND & ORS.

M/S GUJARAT AMBUJA EXPORTS LTD &ANR. versus STATE OF UTTARAKHAND & ORS.

The Uttarakhand State Legislature lacked competence to enact Section 27(c)(iii), which sought to levy market fee and development cess on agricultural produce brought for manufacturing rather than sale; legislative power under Entry 28 List II does not extend to manufacture without sale/purchase in the market area,...

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Parties
Appellant: M/S Gujarat Ambujaexports Ltd; Respondent: State of Uttarakhand
Jurisdiction
India
Judgment Date
09 December 2015
Procedural Posture
Civil Appeal / Appeal From High Court Judgment
Outcome
Appeal allowed
Legal Topics
Legislative Competence, Market Fee, Development Cess, State Powers, Constitutional Validity
Constitutional Law Taxation Agriculture Legislative Competence Market Fee Development Cess State Powers Constitutional Validity

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Parties

M/S Gujarat Ambujaexports Ltd

Appellant

State of Uttarakhand

Respondent

Procedural Posture

Civil Appeal / Appeal From High Court Judgment

Legal Issues

  1. 1 Whether the State Government of Uttarakhand has legislative competence to enact Section 27(c)(iii) of the Uttarakhand Agricultural Produce Marketing (Development and Regulation) (Amendment) Act, 2012
  2. 2 Whether the amendment to Section 27(c)(iii) is constitutionally valid

Ratio Decidendi

The Uttarakhand State Legislature lacked competence to enact Section 27(c)(iii), which sought to levy market fee and development cess on agricultural produce brought for manufacturing rather than sale; legislative power under Entry 28 List II does not extend to manufacture without sale/purchase in the market area, as confirmed by Supreme Court precedents.

Court Disposition

Appeal allowed

Orders

  • Section 27(c)(iii) of the Uttarakhand Agricultural Produce Marketing (Development and Regulation) (Amendment) Act, 2012 is struck down as unconstitutional.
  • Impugned judgment and order upholding Section 27(c)(iii) set aside.