GOVERNMENT OF ANDHRA PRADESH Vs. KAPITAN DISTILLERIES HYDERABAD

JUDGEMENT

(1.) WHETHER according permission to levy import pass fee of Rs.1/- per bulk litre on the import of Rectified Spirit (RS)/Extra Neutral Alcohol (ENA)/IS/Denatured Spirit (DS) by the State Government in G.O. Ms. No.630, Revenue (Excise-Ill) Department dated 24.5.2003 is valid and sustainable in the light of Part XIII of the Constitution of India or not, is the short question sought to be replenished in the appeal by the State Government preferred against the order of the learned Single Judge dated 27.8.2003 passed in WP No. 12607/2003.

(2.) THE essential facts of the case and the contentions of the writ petitioners which are necessary for disposal of this appeal may be stated in brief:

(3.) A counter-affidavit has been filed by the respondents stating that the petitioners are D-2 licence holders manufacturing IML liquor. Their stand is after lifting of the prohibition, the State evolved its policy for production of IML based on ENA. ENA is manufactured by subjecting the rectified spirit to the second distillation to remove various impurities that are present in the rectified spirit. There are only two grades/ categories of IML with the proof strength of 25 degree UP and 35 degree UP in the State and the same will be marketed with different trade names. The petitioners obtained transport permit for import of ENA as required under Section 9 of the Act. As rectified spirit producing distilleries have decreased the production for want of market within the State, the IML manufacturing distilleries are importing RS/ENA from outside the State as the same is cheaper than the RS/ENA produced in the State. For export of rectified spirit, the exporter has to pay export pass fee of Rs.1/- per bulk litre as per G.O. Ms. No.445 Revenue (EX.III) Department dated 13.5.1996. To protect the interest of the local RS producing distilleries and to regulate the import of RS/ ENA, it is felt necessary to impose the import pass fee of Rs.1/- per bulk litre for the import of RS/ENA. For export of locally manufactured ENA, the State is imposing the export pass fee of Rs.1/- per bulk litre, similarly for import of ENA, the State is imposing import pass fee of Rs.1/- per bulk litre and hence there is no discrimination.