KRISHI UTPADAN MANDI PARISHAD vs I.T.C. LTD.

The Supreme Court addressed the issue of market fee applicability under Section 12 and Section 17 of the Uttar Pradesh Krishi Utpadan Mandi Adhiniyam, 1964, in relation to the transportation of cut tobacco by ITC Ltd. The Court held that the demand for market fee on cut tobacco being transported for manufacturing purposes was not justified, as the tobacco was not sold within the market area. The judgment of the Allahabad High Court allowing the writ petition was upheld, confirming that the respondent was not liable to pay the market fee.