New Delhi: Ruling that ‘ghee’ is a livestock product under an Andhra Pradesh law, the Supreme Court has upheld the state government’s 1994 notification empowering market committees to levy a fee on its sale and purchase.
Besides the question related to levy of market fee on sale and purchase of ‘ghee’ (clarified butter), the top court was to decide whether it is a product of livestock under the provisions of the Andhra Pradesh (Agricultural Produce and Livestock) Markets Act, 1966.
“The argument that ‘ghee’ is not a product of livestock is baseless, and bereft of any logic. The contrary argument that ‘ghee’ is indeed a product of livestock is logically sound. Livestock has been defined under Section 2(v) of the Act, where cows and buffalos are the livestock. Undisputedly, ‘ghee’ is a product of milk which is a product of the livestock,” a bench comprising justices Sudhanshu Dhulia and SVN Bhatti held.
The petitioner had argued that ‘ghee’ is not a product of livestock as cows and buffalos do not produce it directly.
The top court dismissed a plea filed by Sangam Milk Producer Company Ltd against an Andhra Pradesh High Court judgement, clearing the decks for imposition of a fee on its sale and purchase through market committees in the state.
The high court had upheld the state government’s notification and ruled that ghee is a product of livestock.
Writing the judgement for the bench, Justice Dhulia referred to the high court verdict and said that the inclusion of ‘ghee’ as a livestock product cannot be faulted merely because it is derived from another dairy product.
The apex court said the high court rightly held that even though ‘ghee’ is not directly obtained from milk, which is a product of livestock, it would still be a ‘product of a product of livestock’.
“Consequently, we hold that there was nothing wrong in the 1994 notification and the challenge to the notification has rightly been turned down by the Full Bench of the Andhra Pradesh High Court,” the judgement said.
The top court also vacated its interim order by which it had restrained the market committees from collecting market fees on sale and purchase of ‘ghee’.
