PREMIER BREWERIES LTD Vs. STATE OF KERALA

JUDGEMENT

(1.) The petitioner is a Public Limited Company engaged in the manufacture of beer, among other things. The petitioner challenges Exts. P2, P7 and P8 orders of the Assistant Excise Commissioner, the 4th respondent, dated 10-10-1975, 27-7-1977 and 2-8-1977 respectively where under the petitioner is called upon to pay a sum of Rs. 5,43,415 25 which is alleged to be arrears of excise duty payable in respect of beer manufactured during the period from 2-6-1973 to 30-9-1974. The method of calculation under which the said amount is demanded from the petitioner is referred to in Ext. P6 which is a letter dated 15-11-1975 sent by the 4th respondent to the Additional Secretary (Excise), Board of Revenue, the 2nd respondent, with copy to the petitioner. It is pointed out in that letter that duty is payable as per the quantity shown in column 70 of the B5 Register subject to a reduction of 5% as wastage. This calculation is made on the basis of the total quantity of beer produced in a brewery at a given time and not on the basis of actual number of bottles of beer released from a brewery for public consumption.

(2.) S.17 of the Abkari Act (as it stood at the relevant time) postulates different modes of levy of duty on beer. Duty may be levied either on the: quantity produced as under clause (d), or on the basis of bottles released as under clause (f). These are alternative and mutually exclusive modes of levy. The relevant portions of S.17 read:

(3.) Petitioner's counsel Shri M. Ramachandran refers to Ext. P1 dated 21-6-1973, in which letter dated 16-6-1973 of the Deputy Commissioner of Excise is extracted. That letter reads: