GOVERNMENT OF HARYANA Vs. HARYANA BREWERY LIMITED

JUDGEMENT

(1.) The challenge in this appeal is to the decision of the High Court relating to levy of excise duty on the beer brewed by the respondent.

(2.) This appeal arises from the decision of the High Court which had allowed the respondent's writ petition and quashed the demand raised by the appellant in respect of the years 1986-87, 1987-88 and 1988-89. According to the appellant, this demand was raised because the wastage which was shown by the respondent in the brewing of beer was more than 10 per cent. prior to the year 1986-87 and 7 per cent. thereafter.

(3.) In order to understand the controversy, it is necessary to first examine the process in connection with the manufacture of beer. This process has been referred to by this Court in Mohan Meakin Ltd. vs. Excise and Taxation Commissioner, H.P. and others (1997) 2 SCC 193 and described at page 196 as follows :-