ORDER Saw Mills Owners Welfare Association, Adilabad, and its General Secretary, filed instant writ petition seeking a writ of Mandamus declaring circular issued by Conservator of Forests, Adilabad Circle, and consequential proceedings dated 08.11.2002 of second respondent as illegal and arbitrary being contrary to Andhra Pradesh Forest Act, 1967 (the Act, for brevity) and Andhra Pradesh Saw Mills (Regulation) Rules, 1969 (the Rules, for brevity). Petitioners also seek a consequential direction to respondents not to insist on conversion percentage in respect of timber sawn in saw mills situated in Adilabad District. 2. Petitioners' association is registered one with forty members, who statedly have saw mill licences granted under the Rules, to run saw mills in different places in Adilabad District. Licences are regulated by the Rules. In addition to the Rules, saw mills are also required to adhere to Andhra Pradesh Forest Produce Transit Rules, 1970 (Transit Rules, for brevity) and the Act. Under the impugned circular/proceedings, in addition to complying with provisions of the Act and the Rules, members of association are required to mention qualities of timber bought from the depots in the saw mill register and not to take up sawing operations till timber or material bought by them is inspected by the concerned Forest Range Officers (FROs), who were advised to assess quantities as communicated by first respondent in circular dated 26.10.2002. Saw mill licensees are also required to maintain conversion percentage of timber at 85% for Quality-A timber, at 60% for Quality-B timber and at 40% for Quality-C timber, and also make alterations in the Registers in Form III (A) and III(B) in the prescribed proforma as communicated by Divisional Forest Officer (DFO), Mancherial. They were advised to allot Pages 1 to 20 for "A" class, pages 21 to 50 for "B" class and pages 51 to 100 for "C" class in saw mill register opened for the purpose, which shall be maintained in the form to be communicated after renewal of licences. Petitioners contend that it is highly impossible to achieve particular percentage while converting timber into sizes and the same depends on the nature of wood and also skill that is applied while converting timber. According to them, there is always unexpected factors influencing percentage of timber and conversion, and in the absence of any such stipulation in the Rules or the Act, respondents 1 and 2 cannot insist for such requirement. 3. According to them, there is always unexpected factors influencing percentage of timber and conversion, and in the absence of any such stipulation in the Rules or the Act, respondents 1 and 2 cannot insist for such requirement. 3. Counter affidavit is filed by first respondent. Additional counter is also filed in a more detailed manner. In the counter, it is stated that so as to minimize irregularities in saw mills Principal Chief Conservator of Forests (PCCF) issued instructions vide Reference NO.28420/ 2000-XI, dated 24.7.2000 (hereafter, PCCF circular) directing Conservator of Forests (CFs) and DFOs to check saw mills so that they do not resort to conversion of any illegal material and maintain proper records. A proforma was fixed for inspection of staff. These instructions are purely for inspecting officers and no ceiling was fixed for conversion of these instructions. First respondent (CF, Adilabad) issued circular instructions dated 26.10.2002 (hereafter, CF circular) to all DFOs and FROs to verify conversion percentage at the time of inspection of the saw mills to have a regular watch. Basing on these instructions; DFO, Mancherial, issued instructions dated 08.11.2002 (DF circular) to all saw mill owners regarding qualities of timber brought from depots and advising them not to convert any material received unless the material is inspected by concerned FROs. Therefore instructions are not contrary to the Act and they are intended to prevent illegal smuggling. It is also mentioned that out of sixty saw mills in Adilabad, there are ten saw mills in Mancherial division. Out of these saw mills, only in Nava Durga Saw Mill, excess percentage of conversion of timber was found though all the saw mill owners are purchasing timber from Government timber depots of Adilabad District. Flying squad, Mancherial, inspected Nava Durga Saw Mill on 22.8.2003 and found deviation in teak timber and sawn sizes with reference to Form-III Registers maintained by the saw mill owner. On the representation of petitioners' association submitted on 26.7.2003, action has already been taken by third respondent duly examining entire issue in detail and issued instructions vide PCCF circular dated 08.8.2003 to all the departmental officers to ensure that all logs in depots are checked thoroughly. Impugned circulars were issued to curb illegal activities of saw mill owners and the same does not suffer from any illegality. 4. First respondent also filed a detailed additional counter affidavit explaining rationale in issuing CF circular. Impugned circulars were issued to curb illegal activities of saw mill owners and the same does not suffer from any illegality. 4. First respondent also filed a detailed additional counter affidavit explaining rationale in issuing CF circular. Salient aspects in additional counter affidavit are as follows. Several instances have come to notice that saw millers are resorting to trade illicit timber. They purchase timber from patta lands of adjoining Maharashtra State and transport the same on transit permit. During the check, it is noticed that material mentioned on transit permit is not tallying with actual timber received at saw mill. The quantity received in the saw mill is always less than the quantity mentioned in permit. Several instances were noticed by vigilance wing that saw mill owners convert illicit timber and make good money with permit quantity as valuable teak timber is available abundantly in reserve forest of Adilabad District. In view of above, restrictions were issued to curb illegal business. PCCF issued circular reiterating implementation of the Rules as amended by the Government from time to time. CF also issued circular because some saw millers are indicating outturn of timber in an unrealistic manner and showing higher conversions than actual. 5. While denying the allegations made by petitioners that it is highly impossible to arrive particular percentage while converting timber into sizes, CF states that conversion percentage depends upon quality i.e., soundness of timber, which is being converted. Forest department is selling timber on the basis of quality and soundness of wood. As per Andhra Pradesh Departmental Extraction Manual (DET Manual), detailed instructions are given in Chapter-Vii with regard to procedure to be followed for depot sales, registers to be maintained, test checking of timber put for sale etc. As per DET Manual, timber will be classified as sound, partly sound and unsound. The classification gives outturn of timber at the time of conversion of wood into timber. Sound timber means log absolutely without any hole, partly sound timber means log with one hole with maximum diameter of 1 Y2 cm, and unsound timber means log with holes and yields only 50% of timber when compared to yield of sound log. Much skill is not required to say whether timber is sound, partly sound or unsound. Much skill is not required to get good outturn from sound timber. All the saw mill owners are purchasing unsound wood. Much skill is not required to say whether timber is sound, partly sound or unsound. Much skill is not required to get good outturn from sound timber. All the saw mill owners are purchasing unsound wood. But at the time of conversion of timber, they are showing outturn more than sound wood. In this way, saw mill owners are paying less price and showing conversion of timber in an unrealistic manner. To curb the menace, PCCF issued circular to prevent saw mills from resorting to illegalities. The impugned circulars are issued to regulate saw mills and they cannot be termed as unreasonable restrictions nor right of petitioners to trade or business is violated. 6. It is further stated that forest offences are three types viz., (a) cutting and felling of trees in forest without permission; (b) transporting illicit wood; and (c) storing 33 and cutting of illicit wood. Forest department has to take care of three kinds of offences. As the conversion of timber or wood in the saw mills only, restrictions are imposed. If such restrictions are not imposed, it is very difficult to prevent offences falling under third category. Additional counter also refers to alleged illegalities committed by Nava Durga Saw Mill. A reference is also made to amendments made by Government to the Rules vide G.O.Ms.No.99, dated 07.7.1998 with a view to prevent exploitation of forests by illicit felling of valuable teak forests by unscrupulous traders. 7. Learned Counsel for petitioners and learned Government Pleader made submissions and also relied on reported cases in support of their submissions. These will be referred to at an appropriate place in course of judgment. The background of case and submissions made by Counsel gives rise to only point for consideration whether impugned circulars are ultra vires the provisions of the Act and the Rules. 8. PCCF, CF and DFO are important officers in the scheme of things. They however do not hold statutory posts as in the case of other enactments like Andhra Pradesh Excise Act, 1968, and Andhra Pradesh Charitable and Hindu Religious Institutions and Endowments Act, 1987. Therefore these officers cannot act outside the purview of the Act or relevant rules made thereunder. The term "Forest Officer" means any person appointed by the Government to be Chief Conservator (PCCF), Deputy Chief Conservator, DFO etc., to perform any function of forest officer under the Act or Rules thereunder. Therefore these officers cannot act outside the purview of the Act or relevant rules made thereunder. The term "Forest Officer" means any person appointed by the Government to be Chief Conservator (PCCF), Deputy Chief Conservator, DFO etc., to perform any function of forest officer under the Act or Rules thereunder. Chapter IX (Sections 62 to 65) of the Act deal with powers of forest officers. Section 62 of the Act empowers the Government to invest any forest officer not below the rank of a ranger with any of the powers like entering upon the land for survey/demarcation, holding enquiries into forest offences and accepting compounding fee under Section 59 of the Act. Therefore, any instructions issued by PCCF or consequential orders passed by CF/DFO cannot have any statutory powers. This Court however hastens to add that PCCF being the head of department of forests, is always entitled to issue appropriate circulars containing guidelines or executive instructions to all subordinate officers to ensure proper management of forests and administration of forest department. This however does not mean that PCCF can issue any such circulars, which are contrary to provisions of the Act or the relevant Rules. PCCF circular reads as under. Government of Andhra Pradesh Forest Department Ref.No.28420/2000-X1 Office of the Prl. Dated: 24.7.2000 Chief Conservator of Forests, A.P., Hyderabad. Sri SD.Mukherji, IFS Prl. Chief Conservator of Forests Sub: Forest Department Establishment of Saw Mills Frequent Inspection of Saw Mills - communication of Proforma Regarding. The establishment of Saw Mills and maintenance of record of transactions etc., are governed by the A.P. Saw Mill (Regulation) Rules, 1969 and as amended by the Government from time to time. As per these rules a register in the manner prescribed in these rules shall be maintained by every saw mill, for accounting fully and properly the timber received in the saw mill and disposed off. This register is required to be produced for inspection along with the permits/invoices in original in the licensed premises before any Inspecting authority. The Divisional Forest Officer, Forest Range Officers and Forest Section Officers in a division are required to take up the inspection of the saw mills regularly in their jurisdiction. Further the Divisional Forest Officer, Flying Squad Party is also required to take up the inspection of the saw mills at frequent intervals. The Divisional Forest Officer, Forest Range Officers and Forest Section Officers in a division are required to take up the inspection of the saw mills regularly in their jurisdiction. Further the Divisional Forest Officer, Flying Squad Party is also required to take up the inspection of the saw mills at frequent intervals. This is to check that the saw mills are not resorting to convert any illicit material and also that the prescribed records are meticulously maintained. From the monthly D.O. reports of the Conservators of Forests as well as the Flying Squad Divisional Forest Officers being received in this office, it is observed that the saw mills are being cursorily inspected by the officers and staff, without going into the details. Even when the saw mills are indicating the out turn in an unrealistic manner and showing higher conversions than the actuals the same are not being brought out at the time of inspections. Some time back a proforma has been evolved in Warangal circle for inspection of the saw mills which has become quite effective in checking of the functioning of the saw mills. A copy of the same proforma is enclosed and sent herewith. The Conservators of Forests and Divisional Forest Officers are requested to see that at least a few of the saw mills are inspected as per this proforma every month by the staff at all levels, besides surprise inspection of the saw mills taken up by the staff at more regular intervals. For this purpose the Conservators of Forests/Divisional Forest Officers may communicate a programme to the concerned officers indicating the number of saw mills to be inspected in this manner every month. Care may be taken that each of the saw mills in the jurisdiction is inspected thoroughly adopting this proforma atleast once in six months. It may be noted that this is in addition to the surprise inspections of the saw mills taken up by the officers and staff at more frequent intervals to catch redhandedly conversion of the illicit material if any. End: One Sd/- S.D.Mukherji, Prl.Chief Conservator of Forests To All Conservators of Forests and Divisional Forest Officers. 9. The analysis of the above circular would show that they are mainly concerned with frequent inspection of saw mills to prevent conversion of illicit timber and maintenance of records by saw mill owners as per the Rules. End: One Sd/- S.D.Mukherji, Prl.Chief Conservator of Forests To All Conservators of Forests and Divisional Forest Officers. 9. The analysis of the above circular would show that they are mainly concerned with frequent inspection of saw mills to prevent conversion of illicit timber and maintenance of records by saw mill owners as per the Rules. PCCF directed CFs and DFOs to ensure that few of the saw mills are inspected as per proforma appended thereto by the staff at all levels, that such inspections are done at least once in six months, that is to say, all the staff should take up surprise inspection of each saw mill at least once in every six months. Such inspections are intended to catch saw mill owners red-handedly if they resort to conversion of illicit timber in their saw mills on mere suspicion that illicit timber is being converted to sawn sizes. 10. Keeping purport of PCCF circular, impugned circular of CF may be noticed, which reads as under. Government of Andhra Pradesh Forest Department Ref.No.8658/02-M4 Office of the Dated: 26.10.2002 Conservator of Forests, Adilabad Circle, Adilabad. Sri M.Buliaiah, IFS Conservator of Forests Sub: F.D. - GTD's - Delivery of sold material- Instructions Issued to mention Percentage of conversion while issuing permits and instructions issued to verify and record percentage that can be obtained soon after receipt at Saw Mill - Reg. CIRCUL NO.3/2002 All the Divisional Officers are hereby instructed to issue instructions to Forest Range Officers of Governments Timber Depots to mention possible percentage conversion on the other side of the permit while delivering the material. This can be given in the following Proforma. SI. Lot Depot Planks Expected Re No No. Classification Conversions as marks Skat Small Size Small Size Links of more of more than 1 Mt. than 1 Mt Size Size Including Including Repairs furniture bends All the territorial Forest Range Officers at the time of inspecting Saw Mill soon after receipt of material in Saw Mill shall inspect the logs and make a statement in the above Proforma. They can do it for each log also and submit their report to concerned Divisional Forest Officer within (24) hours of receipt of such material in Saw Mill compound. The monthly abstract conversion as shown by Saw Mill owner shall be reconciled with Forest Range Officer report received in the division office for that month. They can do it for each log also and submit their report to concerned Divisional Forest Officer within (24) hours of receipt of such material in Saw Mill compound. The monthly abstract conversion as shown by Saw Mill owner shall be reconciled with Forest Range Officer report received in the division office for that month. In that way the functioning of Saw Mill shall be checked by the Divisional Forest Officer and take necessary action whenever irregularity is notic9d as per Saw mill Regulation Rules Andhra Pradesh Forest Act whenever irregularity is noticed the matter shall be repented to the Conservator of Forests. (3) The above Proforma at Para 1 should be followed by permit issuing authority while issuing permits to patta material also. Please acknowledge the receipt of the circular. Sd/- Conservator of Forests, Adilabad Circle, Adilabad. 11. There is no dispute that CF circular is purportedly sequel to PCCF circular. This is admitted by first respondent in his pleadings. There would not have been any objection if CF circular impeached in the case, was in tune with PCCF circular. It is not so. CF goes further and directs FROs to inspect saw mills within 24 hours after timber is received and make entries in the proforma given in the impugned CF circular. When an officer inspects saw mill immediately after receiving timber, one fails to understand as to how inspecting officer can mention expected conversions in columns 6 and 7. It is a common knowledge that most of the saw mills would not strictly adhere to a uniform size while cutting timber and they cut timber in a customized manner as indented by purchasers of teak sizes. Be that as it is when FRO is directed to inspect saw mill within 24 hours after receipt of timber, it presupposes that saw mill licensee has to necessarily inform FRO concerned, default of which attracts adverse departmental action. 12. It is also not denied that DFO issued another impugned circular, which is admittedly consequential to PCCF circular and CF circular. Here again there would not have been any serious objections if DFO circular was in tune with PCCF circular. Again it is not so. To appreciate this, DFO circular may be referred to hereunder. Government of Andhra Pradesh Forest Department Ref.No.4850/01-S6 Office of the Dated: 08.11.2002 Divisional Forest Officer, Mancherial. Sri Y.8abu Rao, IFS Dy. Here again there would not have been any serious objections if DFO circular was in tune with PCCF circular. Again it is not so. To appreciate this, DFO circular may be referred to hereunder. Government of Andhra Pradesh Forest Department Ref.No.4850/01-S6 Office of the Dated: 08.11.2002 Divisional Forest Officer, Mancherial. Sri Y.8abu Rao, IFS Dy. Conservator of Forests & Divisional Forest Officer, Mancherial. Sub: Saw Mills - Monthly returns of different saw mills under Jurisdiction of Mancherial for the year 200 1-02 -Instructions issued - Regarding. Ref: CFAC Add!. Lr.No.3/2002, Dt.26.10.2002. It is observed in general during the inspection of the saw mills located under the jurisdiction of the Divisional Forest Officer, Mancherial that the timber accounts are not properly maintained in Form No.3A (Receipt) and 38 (Disposal) Registers. They are simply entering the receipt of the timber by showing the T.P.No.1I date, NO. of logs and cmt. only. They are failed to furnish the quality of timber in the Register against quantity of timber received. The saw mill owners are also not keeping the invoices issued by the depot officials which are required for the verification by the officers. The Conservator of Forests, Adilabad Circle, Adilabad in circular NO.3/02 (Rc.No.8658/D/M7) dt.26.10.2002) has issued strict instructions to the Forest Range Officers concerned for the inspections of the material received in the saw mill and assess the qualities in the prescribed proforma before according conversion permission. The saw mill owners are strictly instructed to mention the qualities of the timber brought from the depots etc., in the saw mill register and they are further instructed not to convert any material received in the saw mill until or unless the material inspected by the concerned Forest Range Officers and assess the quantities as communicated by the Conservator of Forests, Adilabad Circle in the above circular. If any irregularities are noticed the licence will be cancelled. The qualities wise expected percentage is furnished below: Quality - A 85% Quality - B 60% Quality - C 40% The saw mill owners are instructed to allot the pages for the above (3) qualities from 151 January onwards in Saw mill registers 3A and 3B in the prescribed proforma communicated by the Divisional Forest Officer Mancherial. The qualities wise expected percentage is furnished below: Quality - A 85% Quality - B 60% Quality - C 40% The saw mill owners are instructed to allot the pages for the above (3) qualities from 151 January onwards in Saw mill registers 3A and 3B in the prescribed proforma communicated by the Divisional Forest Officer Mancherial. The saw mill register consists of 100 pages in which 1 to 20 pages for "A" class, 21 to 50 pages for "B" class and 51 to 1 00 for "C" class may be allotted for maintained the receipts. The proforma will be communicated to the saw mill owners know after the renewal of the saw mill licences from 1st January 2003 onwards. They should maintain 3A, 3B forms separately indicating the qualities in different papers as mentioned above. Sd/- Divisional Forest Officer, Mancherial. 13. DFO completely deviates from PCCF circular as well as CF circular and further mandates all saw mill licensees, "not to convert any material in saw mill until or unless the material is inspected by the concerned FRO and assess the quantities as communicated by CF in the circular dated 26.10.2002." He also gives expected percentages quality-wise and while instructing saw mills to maintain registers in Form III (A) and Form III (B) also prescribes a saw mill register considering 100 objects and gives guidelines as to how these objects have to be utilized for the purpose of maintenance of percentage of A, Band C class timber. Licensees were informed that any deviation or irregularities from CF circular instructions would entail in cancellation of licence. 14. Even after PCCF circular, which contains instructions as well as proforma for inspection of saw mills, CF and DFO circulars cannot be sustained in law. They are ultra vires. Section 68 of the Act empowers State Government to make rules to carry out all or any of purposes under the Act. Section 68(2)(a) of the Act empowers the Government to make rules providing for powers conferred or duties imposed on various forest officers and the manner of exercising such power. State Government has made Andhra Pradesh Saw Mills (Regulation) Rules, 1969 (the Rules, for brevity). Under Rule 4(2) thereof, no person is entitled to erect or operate a saw mill without grant of licence. Rule 7 of the Rules contains conditions subject to which licensee can operate the saw mill. State Government has made Andhra Pradesh Saw Mills (Regulation) Rules, 1969 (the Rules, for brevity). Under Rule 4(2) thereof, no person is entitled to erect or operate a saw mill without grant of licence. Rule 7 of the Rules contains conditions subject to which licensee can operate the saw mill. It is relevant to extract Rule 7 of the Rules, which reads as under. 7. (1) Registers as given in Form-III(A) and (B) of these rules shall be maintained by every licence holder for accounting fully and properly the timber received excluding the exempted species under transit rules in the saw mill for conversion, and its disposal. The registers should be made available at any time to all inspecting officers along with permits/invoices in original, within the saw mill premises. (2) A yearly abstract of receipts of disposal with the balance of unconverted stock on hand shall be submitted before the 10th of the January next to the Divisional Forest Officer concerned failing which the licensee shall be liable to pay a sum of RS.500/- for every month of default. Variation of 5% in round timber in figures in between the register and ground stock in measurements is permissible and variation in excess of the above should be explained. (3) The licensee shall not operate the saw mill or any machinery within the saw mill premises during the period of 22.00 hrs to 0600 hrs. of next day, except in Municipal Corporation/ Municipality areas. However, in special circumstances, the Divisional Forest Officer concerned on application made to him may consider relaxation of the above timing for a period to be specified by him. And any such relaxation order obtained by the licence holder shall be displayed in a conspicuous place for verification by inspecting officers. (4) All the timber, saw sizes and wood waste shall be properly stacked in the saw mill premises. (5) Timber for sawing and conversion shall not be accepted unless: (a) it bears property marks; and (b) it is covered by a transit permit, and for this purpose all timber lying within and adjacent to saw mill premises upto a distance of five meters shall be taken into consideration: Provided that the licence holder shall immediately report to the nearest Forest Officer, the timber without property marks, and the timber not claimed by others. (6) When timber is brought for conversion to saw mill premises, the licence holder should retain the original permit and issue 'Form-II permit' or 'Form-IV', under Andhra Pradesh Forest Produce Transit Rules, 1970 as the case may be to the timber owner along with a photo copy of original permit. 15. A plain reading of Rule 7 of the Rules would show that every saw mill licensee has to maintain two registers. One register showing forest produce in saw mills and depot in Form III (A). In this register, details of forest produce received by saw mill/depot, details of species, quantity of forest produce and quantity of sawn sizes obtained if sawn have to be mentioned. Second register in Form III (8) must show details of forest produce in saw mills/depot giving particulars of persons to whom timber was disposed of, destination and cash bills particulars. When the Rules already contemplate maintenance of registers and when Rule 9(1) of the Rules empowers Licensing Authority to cancel licence for contravention of provisions of the Act or the Rules or the conditions of licence, there cannot be any necessity to again issue instructions by CF or DFO especially when such instructions are contrary to provisions of Rule 7 of the Rules. 16. In addition to complying with Rule 7 and maintenance registers in Form III (A), every saw mill owner is also required to follow Transit Rules. As per Rule 3 of Transit Rules, no forest produce shall be moved into or within State unless such produce is accompanied by a permit issued under Rule 5 of Transit Rules. The power is also given to Officer in-charge, Check post, to satisfy himself that forest produce in transit is genuinely covered by permits under the Transit Rules. A mention is made to these Rules to show that Rule making authority has taken abundant care for avoidance of misuse of permits or misuse of timber purchased by a saw mill. CF circular and DFO circular imposed yet another condition that saw miller should inform FRO/FSO before taking up sawing operations after receiving timber in the saw mill. Therefore, two impugned circulars are illegal and ultra vires. They amount to unreasonable restrictions not authorized by law. CF circular and DFO circular imposed yet another condition that saw miller should inform FRO/FSO before taking up sawing operations after receiving timber in the saw mill. Therefore, two impugned circulars are illegal and ultra vires. They amount to unreasonable restrictions not authorized by law. However, this Court hastens to add that PCCF circular in Reference No.28420/2000-XI, dated 24.7.2000, being in the nature of administrative instructions for the purpose of ensuing frequent inspection of saw mills cannot be faulted. It is always open to PCCF as head of department to issue instructions from time to time for effective implementation of the Andhra Pradesh Forest Act and to protect and preserve flora and fauna in forests. 17. In the result, for the above reasons, impugned circulars issued by Conservator of Forests, Adilabad Circle, in R.C. No.8658/02-M4, dated 26.10.2002, and Divisional Forest Officer, Mancherial, in Rc.No.4850/01/S6, dated 08.11.2002, are set aside, and the writ petition is accordingly allowed. No costs.