INDIAN ORGANIC CHEMICALS LIMITED Vs. COLLECTOR OF RAIGAD

JUDGEMENT

(1.) THE petitioner is a company engaged in manufacture of acetic acid, acetic anhydride and certain other chemicals. These chemicals are manufactured from rectified spirit. The State of Maharashtra has framed the Bombay Rectified Spirit (Transport in Bond) Rules, 1951 (for short "the Rules") for transport of such rectified spirit on terms and conditions specified therein. The petitioner company has been issued requisite licence for transport, possession and use of rectified spirit for manufacture of chemicals. The petitioner company has been allowed to purchase, transport, possess and use rectified spirit under bond and under excise supervision pursuant to R. S. II licence.

(2.) RULE 8 of the aforesaid Rules as it stood at the relevant time reads as follows:

(3.) IT appears that in respect of two consignments of rectified spirit which were being transported to the petitioners factory at Khopoli, there was a loss of 660 and 410 bulk litres in transit. In view of the fact that wastage was of more than the permissible limit, the Excise Collector raised a demand of Rs. 23,782. 50 and Rs. 23,723. 00 respectively on both the consignments under Rule 8 (2) of the Rules. The petitioner had preferred an appeal to the Government against the aforesaid demand raised by the Collector which came to be dismissed. The orders of the Collector and the Government are impugned in this petition.