Punjab Dairy Development Board & Anr., ... vs Cepham Milk Specialities Ltd. & Ors., ...

The Supreme Court upheld the Punjab and Haryana High Court's decision declaring the levy of cess on milk plants under the Punjab Dairy Development Board Act, 2000 as unconstitutional. The Court found that the levy was effectively a tax on licensed capacity, which the State Legislature lacked the authority to impose under the Constitution, specifically referencing the principles established in M/s Kishan Lal Lakhmi Chand & Ors. Vs. State of Haryana & Ors. The Court affirmed the High Court's ruling that the levy was arbitrary and discriminatory, as it did not provide any direct benefit to the milk plants.