SAPATHAGIRI ENTERPRISES Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) In these petitions, the petitioners are calling in question the validity of the Rules framed by the respondents under Section 71 of the Karnataka Excise Act, 1965 known as Karnataka Excise (Distillery and Warehouse) (Amendment) Rules, 1992.

(2.) THE petitioners are engaged in the business of primary distilleries or the distilleries which have units where the spirit is ultimately converted into potable alcohol.

(3.) THE learned Government Advocate contended that the State has necessary competence to levy not only fee, but also to collect consideration for parting with privilege to manufacture spirit out of molasses or units which use spirit for purposes of manufacturing intoxicant liquors; that appropriate procedure has been followed in levying the impost in the impugned Rules and there is no arbitrariness in the levy of the said impost.