- 1 - NC: 2025:KHC-D:20 WP No. 114621 of 2019 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 6TH DAY OF JANUARY, 2025 BEFORE THE HON'BLE MR. JUSTICE SURAJ GOVINDARAJ WRIT PETITION NO. 114621 OF 2019 (APMC-) BETWEEN: M/S. SRI. MOOKAMBIKA COTTON GINNING & PRESSING MILL, R.S. NO.759/1B, HUNASIKATTI ROAD, RANEBENNUR, HAVERI DISTRICT-581110. REPRESENTED BY ITS PROP: SMT. RAJESHWARI W/O. SANGAYYA SALIMATH, AGE: 48. …PETITIONER (BY SRI. RAJASHEKAR GUNJALLI, ADVOCATE) AND: 1. THE STATE OF KARNATAKA, BY ITS PRINCIPAL SECRETARY, DEPARTMENT OF AGRICULTURE, M.S. BUILDING, BENGALURU-560001. 2. THE JOINT DIRECTOR, DISTRICT INDUSTRIES CENTER, HAVERI-581110. 3. THE SECRETARY, AGRICULTURAL PRODUCE MARKET COMMITTEE, RANEBENNUR, HAVERI DISTRICT-581110. …RESPONDENTS (BY SRI. M.M. KHANNUR, AGA FOR R1 & R2; SRI. P.N. HATTI, ADVOCATE FOR R3) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT IN THE NATURE OF MANDAMUS DIRECTING THE 3RD RESPONDENT TO EXTEND THE BENEFIT OF EXEMPTION OF THE MARKET FEE AND ISSUE EXEMPTION CERTIFICATE FOR PERIOD 10 YEARS IN NO. I & C DIC/HUR/IPO/APMC CESS/O1/14-15/2015-16 DATED 25.07.2015 AS PER ANNEXURE-B TO PETITIONER INDUSTRY THE INTEREST OF JUSTICE AND EQUITY AND ETC. ASHPAK KASHIMSA MALAGALADINNI Digitally signed by ASHPAK KASHIMSA MALAGALADINNI Location: HIGH COURT OF KARNATAKA DHARWAD BENCH - 2 - NC: 2025:KHC-D:20 WP No. 114621 of 2019 THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: ORAL ORDER (PER: THE HON'BLE MR. JUSTICE SURAJ GOVINDARAJ) 1. The petitioner is before this Court seeking the following reliefs: I. Issue a writ in the nature of Mandamus directing the 3rd respondent to extend the benefit of exemption of the Market Fee and issue exemption certificate for period 10 years in No. I & C DIC/HUR/IPO/APMC CESS/o1/14-15/2015-16 dated 25.07.2015 as per Annexure-B to petitioner industry the interest of justice and equity. II. Issue such other writ or order and directions as this Hon’ble court deems fit under the facts and circumstances of the case and allow this writ petition, in the interest of justice and equity. 2. The petitioner started her business of cotton ginning and pressing mill in the year 2013 after obtaining necessary licence on 23.01.2013. As per the Karnataka Industrial Policy, 2009-14, the petitioner’s industry was granted exemption from payment of APMC cess/fee on purchase of agricultural produce for a period of 10 years as per the circular issued on 20.11.2014. Initially, exemption for 3 years was - 3 - NC: 2025:KHC-D:20 WP No. 114621 of 2019 granted. The subsequent exemption for remaining period of 7 years was not granted and it is in that background the petitioner is before this Court seeking for the aforesaid reliefs. 3. The certificate issued by the Department of Industries and Commerce dated 25.07.2015 in favour of the petitioner reads as under : “-:CERTIFICATE:- Sub: Eligibility for Exemption of APMC Cess/ fee on purchase of agriculture produce directly from the farmers by M/S. Shri. Mookambika Cotton Ginning & Pressing Mill, R.S.No.759/1B, Hunasikatti Road, Ranebennur. Ref: 1. Integrated Agri-Business Development Policy 2011 GO. No.AHD/172/AFT/2010, dated 05-03-2011 2. Notification No. 73/ / 2012, dated 16-03-2013, published in Gazette dated: 16-03-2013. 3. Directorate of I&C Circular No. 03/2013-14, dated:- 06-07-2013. 4. Industrial Policy 2014-19 Govt. Order No.CI 58 SPI 2013 Dt: 01-10-2014. 5. Earlier Certificate issued No.DIC/HVR/APMC Cess/05/2012-13 Dt: 14-03-2013 under 2009-14 Industrial Policy. - 4 - NC: 2025:KHC-D:20 WP No. 114621 of 2019 6. Directorate of I&C Circular No. / / !"/2014-15 Dtd 20- 11-2014. 7. Application No. Dtd: 10-04-2015 of Shri. Mookambika Cotton Ginning & Pressing Mill, RS. No.759/1B, Hunasikatti Road, Ranebennur. This is to certify that 1. M/S. Shri. Mookambika Cotton Ginning & Pressing Mill, is a new Small agriculture produce processing industrial unit located at RS. No.759/1B, Hunasikatti Road, Ranebennur. 2. The enterprise is registered with Government of India vide No:290111200036 dt. 13-03-2013 for the manufacture/processing of Ginned Cotton & Cotton Seeds. 3. The enterprise has located its commercial production on 21-02-2013 as evidenced by the First Sale Invoice No. 01 dated 21-02-2013. 5. The investment made on the fixed assets as per C.A. Certificate is as under: Sl.No Investment (in Rs.) 1 Land 1,10,00,000-00 2 Building 1,60,00,000-00 3 Plant and Machinery 2,35,00,000-00 4 Other fixed assets. 50,00,000-00 Total 5,55,00,000-00 6. Based on the machineries, the installed capacity of the enterprise is certified as under: - 5 - NC: 2025:KHC-D:20 WP No. 114621 of 2019 Sl. No. Product Installed capacity 1 Cotton Lint 63,360 Qtls pa 2 Cotton Seeds 124800 Qtls pa 7. Certified that the unit's requirement of Raw Materials per annum is as under: Sl.No. Name of the Raw Materials Quantity per annum 1 Cotton (Kapas) 192000 Qtls 8. The enterprise is eligible to avail exemption from payment of APMC for a period of 10 years as per circular cited at ref. (6) 9. This certificate that, the certificate issued vide. Ref. (5) is for a period of 3 (Three) years from 21-02-2013 to 20-02-2016 as per 2009-14 industrial policy and also certified that this certificate is issued as per circular cited at ref. (6) for a remaining period 7 (Seven) years from 21-02-2013 to 20-02-2023 total eligible period does not exceed 10 (Ten) years (including the years certified vide cited at ref. (5) above). JOINT DIRECTOR DISTRICT INDUSTRIES CENTRE HAVERI” 4. A perusal of Clause-8 of above certificate would indicate that the petitioner’s enterprise is eligible to avail exemption from payment of APMC cess for a period of 10 years as per the circular cited at - 6 - NC: 2025:KHC-D:20 WP No. 114621 of 2019 reference (6) in the said certificate, this is a Circular dated 20.11.2014. In terms of Item No.9 of the above certificate, it has been categorically stated that the certificate issued on 14.03.2013 is for a period of 3 years from 21.02.2013 to 20.02.2016 and in so far as the balance period of 7 years in pursuance of the circular dated 20.11.2014 is concerned, a separate certificate would have to be issued. However, it is made clear that the petitioner would not be entitled for exemption for a total period not exceeding 10 years. 5. When the District Industries Centre has issued a certificate on 25.07.2015 as aforesaid and it has been categorically made clear that the petitioner would be entitled for exemption for a period of 10 years. The respondent-authorities could not have issued exemption only for a period of 3 years and denied the petitioner the benefit of the balance 7 years. In that view of the matter, I pass the following : - 7 - NC: 2025:KHC-D:20 WP No. 114621 of 2019 ORDER (i) Writ petition is allowed (ii) A mandamus is issued directing 3rd respondent-The Secretary, APMC, Ranebennur to extend the benefit of exemption from making payment of market fee in terms of the certificate dated 25.07.2015 at Annexure-B to the petitioner. Sd/- (SURAJ GOVINDARAJ) JUDGE CKK CT-MCK List No.: 1 Sl No.: 64