HIRALAL AGARWALA Vs. STATE OF ORISSA

JUDGEMENT

(1.) The judgment and order under appeal was delivered by a division bench of the High court of orissa. The High court's judgment deals only with the aspect of short levy of duty, which was challenged having regard to the provisions of Rule 11 of the Medicinal and Toilet Preparation (Excise Duties) Rules, 1956.

(2.) The appellants manufacture medicinal and toilet preparations and for that purpose utilise rectified spirit and pay duty thereon. They were served with a notice by the Superintendent of Excise, Sambalpur, to pay duty on rectified spirit consumed during the period 2/12/1974 to 5/3/1975. Since the notice was dated 16/1/1978, it was the contention of the appellants that the notice fell outside the period of six months provided by the said Rule 11 for recovery of duties or charges that were short-levied.

(3.) The duty that is levied on rectified spirit is not under the provisions of the Medicinal and Toilet Preparations (Excise Duties) Act, 1955. Rectified spirit is exigible to duty under the Bihar and orissa Excise Act, 1915 (2 of 1915. The provisions of the said rule have, therefore, no application and do not bar the issuance of the notice.