SHREE DIGVIJAY CEMENT COMPANY LTD. vs UNION OF INDIA

The Supreme Court upheld the validity of Clause 9A of the Cement Control Order, 1967, which mandates cement manufacturers to pay Rs.9 per metric tonne of non-levy cement produced, citing Sections 18G and 25 of the Industries (Development and Regulation) Act, 1951. The Court ruled that the payment is not a tax but a regulatory charge aimed at equalizing freight costs and ensuring fair pricing in the cement industry. The appeals by the manufacturers were dismissed, affirming the High Court's decision.