ZILA PARISHAD KHERI vs HINDUSTAN SUGAR MILLS & ANR.

The Supreme Court examined the applicability of Section 121 of the U.P. Kishettr a Samitis and Zila Parishads Adhiniyam, 1961, concerning the levy of circumstances and property tax on Hindustan Sugar Mills Ltd. The Court held that the company, whose factory was outside the jurisdiction of the Zila Parishad, could not be taxed under this provision as it did not meet the criteria of 'carrying on business' within the rural area for the required duration. Consequently, the assessment made by the authorities was deemed invalid, and the appeals were allowed, overturning the High Court's decision.