Krishi Utpadan Mandi Parishad & Anr vs I.T.C. Ltd

The Supreme Court upheld the decision of the Allahabad High Court, which ruled that ITC Ltd is not liable to pay market fee under Section 12 and Section 17 of the Uttar Pradesh Krishi Utpadan Mandi Adhiniyam, 1964 for cut tobacco transported from its Saharanpur factory to its Calcutta factory or to contract manufacturers. The Court clarified that the presumption of sale within the market area does not apply to the internal transfer of goods for manufacturing purposes. The judgment emphasized the interpretation of 'sale' in the context of agricultural produce and market fees, affirming the High Court's findings.