I.T.C. LTD. ETC. vs STATE OF KARNATAKA & ORS.

The Supreme Court examined the validity of the Karnataka Agricultural Produce Marketing (Regulation) (Amendment) Act, 1975, particularly Section 65, which mandated the collection of market fees on agricultural produce. The Court held that the provisions of the State Act were repugnant to the Tobacco Board Act, 1975, as they imposed a market fee without a direct nexus to the services rendered. Consequently, the Court declared the levy of market fee as bad in law and ordered the refund of the amounts collected under the invalid provisions, affirming the need for legislative competence in validating such levies.