KHADYA PEYA VIKARETE MALAK SANGH vs THE CHIEF OFFICER, SANGLI MUNICIPAL COUNCIL & ANR.

The Supreme Court held that hoteliers and restaurant keepers, who prepare food articles for sale, are primarily retail dealers and not manufacturers or wholesale dealers under the Maharashtra Prevention of Food Adulteration Rules, 1962. The Court clarified that the definition of 'manufacturer' does not extend to those whose main business is retail sale, thus ruling that the municipality cannot charge them fees under both item 1 and items 3 to 8 of Appendix 1. The appeal was allowed, overturning the High Court's decision that had restored the trial court's order.