AJUDHIYA DISTILLERY Vs. EXCISE COMMISSIONER

JUDGEMENT

(1.) This writ petition under Article 226 of the Constitution of India has been filed by the petitioner, M/s. Ajudhiya Distillery, Moradabad, challenging the imposition and the realisation of purchase tax on alcohol from the petitioner by the District Excise Officer, respondent No. 2.

(2.) The petitioner manufactures alcohol and sells the same in bulk to such parties as are permitted to purchase the same by the respondent No. 2. There is a tax on alcohol at the point of such sale, imposed under the U. P. Sales of Motor Spirit, Diesel Oil and Alcohol Taxation Act, 1939. In the present case the respondent No. 2 seeks to realise an amount of Rs. 9,264.80 from the petitioner as purchase tax. A notice to this effect was given to the .petitioner. The tax pertained to purchase of alcohol for the period 1st November, 1975, to 20th April, 1976. The petitioner's case was that the notice demanding the tax was bad in law and no amount was due from the petitioner, who was a seller and not the purchaser of alcohol. The petitioner's case further was that no purchase tax was realised by it from the purchaser. The petitioner made a representation to respondent No. 2 but it was of no avail. The respondent No. 2 by his order dated 18th November, 1976, directed the petitioner to deposit the said amount as purchase tax by 4th December, 1976. Consequently, the petitioner filed the present petition.

(3.) Although the respondents were granted time to file a counter-affidavit, none has been filed. The facts stated in the petition remained uncon trover ted. However Mr. K. C. Dhuliya, learned standing counsel for the State, has appeared and argued the case on behalf of the respondents. We have heard the learned counsel for the parties.