M.P. CEMENT MANUFACTURERS' ASSON. vs STATE OF M.P. .

The Supreme Court upheld the constitutional validity of the Madhya Pradesh Upkar (Sanshodhan) Adhiniyam, 2001, which imposed a cess on captive power producers, ruling that the State Legislature had the authority to legislate on the matter under Entry 53 of List II of the Seventh Schedule of the Constitution. The Court dismissed challenges based on legislative incompetence, non-compliance with Section 12(3) of the Madhya Pradesh Vidyut Sudhar Adhiniyam, 2000, and violation of Article 14, stating that the amendment was valid and did not contravene constitutional provisions. The Court clarified that the levy was on the sale or supply of electricity, thus affirming the amendment's legitimacy.