2002 ALL SCR 50

SUPREME COURT OF INDIA

Appeal (Civil) 6453 of 2001

24th January, 2002

G.B. PATTANAIK, J.

Y.K. SABHARWAL, J.

RUMA PAL, J.

BRIJESH KUMAR, J.

4

I.T.C. LTD.

AGRICULTURAL PRODUCE MARKET COMMITTEE & ORS.

Tobacco Board Act (1975)

Fee, Sale, State, Writ Petition

Sabharwal, Ruma Pal and Brijesh Kumar, J. :- it is held that:

ITC's case [1985 Supp. (1) SCC 476] was not correctly decided.

2. The State legislatures are competent to enact legislation providing for the levy and collection of a market fee on the sale of tobacco in a market area. Consequently, the Market Acts enacted by the States are valid.

3. The State legislations and the Tobacco Board Act, 1975, to the extent that they relate to the sale of tobacco in market areas, cannot co-exist and the former prevail over the latter.

4. The appeals and the writ petition are disposed of accordingly. No order as to costs.