KAPITAN DISTILLERIES Vs. GOVERNMENT OF ANDHRA PRADESH

JUDGEMENT

(1.) G.O. Ms. No.630 Revenue (Excise-Ill) Department dated 24-5-2003 issued by the Government of Andhra Pradesh, according permission to the Commissioner of Prohibition and Excise, to levy import pass fee of Re. 1/- per bulk litre on the import of Rectified Spirit (RS)/ Extra Neutral Alcohol (ENA)/ is/Denatured Spirit (US), is challenged in this writ petition.

(2.) The petitioners are three distilleries, established in the State of Andhra Pradesh under licences in Form D2, issued to them by the competent authority for manufacture of Indian Liquor (IL).. They contend that ENA is one of the raw materials used in the manufacture of Indian Liquor. It is their case that having regard to several factors, such as, availability and quality, they purchase ENA from certain distilleries in the neighbouring States. According to them, the regulatory measures for purchase of ENA by the distilleries, be it from the distilleries within the State, or outside the State, in the matter of issue of permits, insistence of provision of escort from the Department, fixation of time limit within which the commodity is to be purchased and transported and provision of indemnity against theft, leakage or breakage of the commodity, are one and the same.

(3.) It is the case of the petitioners that the Association of Distilleries in the State of Andhra Pradesh have submitted representation to the Government of Andhra Pradesh for imposition of import fee on the ENA purchased from distilleries outside the State, with a view to discourage such imports and to encourage sales from the distilleries within the States. They allege that acting on such representation, the impugned G.O., is issued, requiring the petitioners to pay the import pass fee at the rate of.Rs.l/- per bulk litre on the ENA imported from other States.