SARAYA INDUSTRIESLTD Vs. STATE OF U P

JUDGEMENT

(1.) THE question that arises for consideration in these petitions is whether excise duty could be levied against the petitioners if the security holograms which were to be affixed by the distilleries on the bottles, pouches and canes under bound were wasted and could not be produced by the distillery before the excise department for verification.

(2.) THE petitioner distilleries have filed these writ petitions for quashing of the policy decision issued by the State Government dated 3 -2 -2001 and the circulars issued by the Excise Commissioner in pursuance of it, as arbitrary, invalid and against law. Civil Misc. Writ petition No. 1204 of 2004 is treated to be the leading writ petition.

(3.) ON 8 -11 -2001 the Excise Commissioner came out with a new policy of bond in Form PD -16 -A to be executed by the distillery to make it responsible for indemnifying the Governor of the State for any loss of excise duty or such other payment awarded as compensation or damages by any Court of law or tribunal or Commissioner established under the law for any accident, death or illness, etc. caused by consumption of spurious liquor carrying misused holograms. This circular dated 8 -11 -2001 further provided that the holograms that were returned to the excise department as damaged or wasted and verified by the authorized committee shall not be liable to any excise duty. However, if the wasted holograms were not produced for verification, then it shall be presumed that it had been misused and the distillery would be liable to pay excise duty on the quantity of country liquor or IMFL, as the case may be, which could have been charged, if the holograms had not been wasted and the distillery was made liable to compensate the Governor for the loss of duty on the quantity of liquor which could have been issued under the missing security holograms.