HIMACHAL PRADESH MARKETING BOARD . vs SHANKAR TRADING CO. PVT. LTD. . — C.A. No. 11464/1996

Case Summary: Himachal Pradesh Marketing Board v. Shankar Trading Co. Pvt. Ltd. Court Decision: The Supreme Court allowed the appeal and reversed the High Court's judgment, holding that Shankar Trading Company must obtain a license and pay market fees under the Himachal Pradesh Agricultural Produce Marketing Act. Key Reasoning: Although katha (catechu) is a scheduled agricultural produce, the respondents cannot claim exemption because they purchased khairwood grown by others and then processed it—they did not grow the raw material themselves. The Act's exemptions apply only to actual growers/farmers who process their own produce. The respondents' extensive manufacturing process (involving 15 detailed steps with physical and chemical treatment) transforms khairwood into a distinct product, but this does not qualify them as "producers" under the Act since they lack ownership of the agricultural input. This case analysis is maintained by casestatus.in based on publicly available court records.