THE HON’BLE SRI JUSTICE L.NARASIMHA REDDY W.P.No.34751 of 1997 Date:22.03.2007 Between: M/s.Sri Ramakrishna Mills (Coimbatore) Limited .. PETITIONER AND The Secretary, Agricultural Market Committee, Nagari, Chittoor District. ..RESPONDENTS ORDER: The petitioner is a Cotton Mill at Nagari in Chittoor District. It purchases cotton from various places in the country. The cotton, being an agricultural produce, is subject to levy of market fee, provided it was purchased or sold in the State of A.P. The Secretary, Agricultural Market Committee, Nagari, Chittor District, issued two orders of assessment for the years 1994-95 and 1995-96. Apart from levying market fee on the cotton purchased in the State of A.P., the respondent demanded market fee on the cotton purchased by the petitioner in other States. The petitioner challenges the action of the respondent insofar as the market fee levied on the cotton purchased from outside the State of A.P. Reliance is placed upon a Judgment of the Supreme Court in AGRICULTURAL MARKET COMMITTEE v SHALIMAR CHEMICAL WORKS LIMITED [1] . Heard the learned counsel for the petitioner and the learned standing counsel for the respondent. The Andhra Pradesh (Agricultural Produce & Livestock) Markets Act, 1966, has its application only for the transactions that take place within the State of A.P. The orders of assessment have clearly disclosed the value of the transactions of purchase of cotton within and outside the State of A.P. There cannot be any dispute as to levy of market fee on the cotton purchased within the State by the petitioner. However, the petitioner cannot be required to pay the market fee on the cotton purchased by it outside the State of A.P. If at all anything, it is the State in which the cotton is purchased that can levy market fee in accordance with law prevailing in that State. A Division Bench of this Court held that the market committees in the State of Andhra Pradesh cannot levy market fee on the transactions which took place outside the State even if the purchaser is from the State of A.P. Following the same, the writ petition is allowed holding that the respondent shall not be entitled to levy market fee on the cotton purchased by the petitioner from the places outside the State of A.P. There shall be no order as to costs. _____________ 22.03.2007 kdl [1] AIR 1997 SC 2502