S K PATTANAIK DEAD Vs. STATE OF ORISSA

JUDGEMENT

(1.) This appeal by special leave is directed against the judgment and order of the Full Bench of the High Court of Orissa dated 2nd of December, 1994.

(2.) Brief facts giving to the present appeal are follows:

(3.) The appellant imported into the State of Orissa Indian made foreign liquor and stored it in a licensed bonded warehouse from where the liquor was to be released for sale. While liquor was so stored in the warehouse, a portion of the imported stock became sedimented and was rendered unfit for human consumption. That stock was, therefore, destroyed. A notice was issued to the appellant for payment of countervailing duty on the stock to the tune of Rs. 10,02,182/-. The validity of the demand of countervailing duty was challenged by the appellant in a writ petition which was heard by a Division Bench of the High Court. It was asserted that since the stock of liquor had been "destroyed" in the warehouse countervailing duty could not be imposed. Before the Division Bench, reliance was placed on the judgment in the case of P. D. Jain v. State of Orissa (O.J.C. 2241 of 1999 (sic) decided on 11-5-1992), which had been followed in the case of Mohan Meakins Ltd. v. State of Orissa (O.J.C. No. 1971 of 1991, decided on 20-9-1993). The Division Bench felt that the two decisions noticed above needed re-consideration. A reference was accordingly made to the Full Bench and that is how the matter was decided by the Full Bench.