BABU P. THOMAS Vs. STATE OF KERALA

JUDGEMENT

(1.) Petitioners are the licencees under S.18A of the Kerala Abkari Act. Petitioners get their licences in every year in accordance with the conditions applicable to the respective period. S.17 and 18 deals with levy of excise duty. S.18 deals with rate of duty. The maximum rate fixed as Rs.20/- per proof litre was changed to Rs. 200/- per proof Hire or an amount equal to 200 per cent of the value of the liquor by Ext. P1 order dated 14.2.1996. The Government of Kerala by an Ordinance No. 2/96 namely the Abkari (Amendment) Ordinance 1996 amended S.18 of the Abkari Act and thereby inserted the following:

(2.) The Government justified the above levy on the basis of the proviso to S.18 which reads as follows:

(3.) For analysing the nature of duty charged I may examine the nature of excise duty charged by the State. Entry 51 of list II in 7th Schedule of the Constitution gives power on the State to charge excise duty which reads as follows: