(1.) The petitioner in the above special civil application under Article 226 of the Constitution, carries on business, inter alia, in denatured spirit in the name and style of Messrs. Rajpal Industries, at 23/24, Industrial Estate, Silvassa, Dadra and Nagar Haveli, Union Territory. In 1969, the Dadra and Nagar Haveli Excise Duty Regulation 1969, was promulgated. The charging section of that regulation was Section 12, which reads as follows: 12. There shall be levied and collected, at such rates and in such manner as may be prescribed by or under this Regulation, not exceeding the rates set forth in Parts A and B of the Schedule, a duty of excise on all liquor manufactured in, or brought into, the territory:Provided that no such duty shall be levied on toddy when used for the manufacture of jaggery, vinegar, yeast or neera or when drunk as such. The Schedule is important for the purpose of determining the questions involved in this case. The said Schedule is as follows: THE SCHEDULE (See Sections 12, 14 and 15) PART A Rates of duty on liquor manufactured in or passed out of any place of manufacture or storage including a distillery, brewery or warehouse licensed or established under this Regulation: Rs. Ps.(1) Foreign liquor other than milk punch, wines and beer 9.00 per proof litre.(2) Milk punch and wines 4.00 per bulk litre(3) Beer 0.75 per bulk litre.(4) Country liquor 1.00 per proof litre.(5) Rectified spirit or absolute alcohol except when used for manufacture of liquor or for medical purposes 0.50 per proof litre.(6) For blending of country liquor. 0.50 per bulk litrein addition tothe duty onmanufacture.PART B Rates of countervailing duty on liquor imported into the territory: Such amounts as represents the difference, if any, between the duty leviable under this Regulation on the quantity of liquor' imported, had it been manufactured in the territory and the duty actually levied on the same quantity of similar goods produced at the place of manufacture. PART C Rates of fees on licences per year: I. Manufacture: (1) For manufacturing foreign liquor other than beer Rs. 500/ -.(2) For manufacturing beer Rs. 250/ -. (3) For manufacturing rectified spirit or absolute alcohol or both Rs. 200/ -.(4) For manufacturing country liquor Rs. 13/ -. per still.(5) For blending of country liquor Rs. 150/ -.(6) For bottling of foreign liquor Rs. 100/ -.(7) For bottling of country liquor Rs. 50/ -.II. Sale: (1) For wholesale vendors of liquor Rs. 500/ -.(2) For retail vendors of liquor Rs. 200/ -.(3) For wholesale vendors of rectified spirit or absolute alcohol or denatured spirit Rs. 200/ -.(4) For retail vendors of rectified spirit or absolute alcohol or denatured spirit Rs. 50/ -.III. Import and export: - -(1) For wholesale vendors of liquor Rs. 10/ -. IV. Miscellaneous: (1) For retail vendors of liquor for keeping the shops open up to two hours after the prescribed time of closing:, a surcharge of 50% of the licence fee. (2) For an occasional licence for retail vendors of liquor: First day Rs. 10/ -, next 4 days Rs. 6/ - per day, next 15 days Rs. 4/ - per day, next 40 days Rs. 2.50 per day and next 60 days Rs. 1.50 per day. PART D Tree tax -per tree per year;Coconut tree and palm tree Rs. 10/ -.Khajure tree and date tree Rs. 7/ -.
(2.) THE question which arises in this petition is as to whether the petitioner is entitled to the refund of excise duty paid by him in respect of denatured spirit.
(3.) WE are not concerned with the other objections which were raised by the petitioner with, regard to licence fees etc. because they were given up by the petitioner. It seems that the department then took up the matter with the Excise Commissioner and in due course it was referred to the Ministry of Law, Government of India. Ultimately, on August 16, 1971, the petitioner was informed by respondent No. 1 that excise duty will be charged on denatured spirit as per Part A (St. No. 5) of the Schedule. Thereafter the petitioner paid the following amounts as excise duty between July 1971 and March 1972, under protest: Date Challan No. AmountRs. Ps.17th July 1971 557 800.0026th August 1971 674 2,400.009th February 1972 1731 4,190.0013th March 1972 1630 4,190.0028th March 1972 1765 6,692.00 Total .. Rs.18,272.00