DUPHEX CHEMICALS Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) petitioner herein has challenged the constitutional validity of the notification No. Fd 13 pes 92, dated 21-11-1992 (karnataka-a) whereby, by amending Rule 4(2) of the Karnataka excise (rectified spirits) rules 1967 (in short, 'the rules'), the government has substantially raised the fee for obtaining the licence thereunder; and sought for quashing the consequential demand notice dated 22-2-1993 in No. Exe/rs.ii/201/92-93 (karnataka-b).

(2.) petitioner is engaged in the manufacture of various chemicals and drug intermediaries. In the said manufacturer process rectified spirit is used as one of the raw materials. Accordingly, as required under the Provisions of the rules, it has obtained form rs(2).

(3.) Rule 2(f) of the rules defines 'rectified spirit' as meaning'plain un-denatured alcohol of a strength not less than 52 o.p. and includes absolute alcohol. Admittedly, it is non-potable and is commonly known as industrial alcohol. Rule 3(1) provides that any person desiring to possess and use rectified spirit for bona fide, medicinal, industrial, scientific, etc., Purpose has to make an application for a licence to the prescribed authority for grant thereof. Sub-rule (2) of Rule 3, which is material for the present purpose reads thus: