State Of U.P. And Ors. vs Sitapur Packing Wood Suppliers Etc.

The Supreme Court upheld the constitutional validity of Rule 5 of the U.P. Transit of Timber and Other Forest Produce Rules, 1978, which imposes a transit fee for the movement of forest produce. However, the Court agreed with the High Court's finding that the levy of transit fee is invalid in the absence of a quid pro quo, emphasizing that the State must provide a service in return for the fee charged. The Court clarified that while the Rule itself is valid, the enforcement of the transit fee without corresponding services is not permissible under the law.