UTKAL DISTILLERIES LTD Vs. STATE OF ORISSA

JUDGEMENT

(1.) THE relief claimed in these three writ petitions filed by the self -same petitioner being identical, they were heard together and are disposed of by this common judgment. In these three writ petitions, the petitioner prays for quashing of the demand notice calling upon it to pay duty on the weak spirit from the years 1994 -95 to 2004 -05.

(2.) THE brief facts of the case are that the Commissioner of Excise, Orissa, vide Order dated 12.9.1990 (Annexure -1) granted licence in favour of the company M/s. Sitansu Mohan Pattnaik and Co. (Liquor) Pvt. Ltd. for manufacturing, bottling, blending and reduction of Indian Made Foreign Liquor (in short, 'I.M.F.L.) from rectified spirit with the condition that the company shall install one rectification column to rectify/purify the rectified spirit to be used in manufacturing of better quality of I.M.F.L. The said company was subsequently renamed as M/s. Utkal Distilleries Private Ltd., the petitioner in these writ petitions.

(3.) IT is not necessary to mention all the facts here. It is pertinent to mention that the petitioner had filed a writ petition bearing O.J.C. No.8635 of 1994 for a direction to the opposite party No.1 to take a decision on the report of the technical committee constituted vide order dated 21.12.1992 which submitted its report on 17.6.1993. The said writ petition was disposed of on 10.1.1995 with a direction to opposite party No.1 to take a decision on the report of the technical committee and communicate the same to the parties concerned within three months from that date. Thereafter the opposite party No.1 vide letter dated 11.1.1995 intimated the petitioner that the Government have decided to allow 2% process loss while re -distilling the rectified spirit in the E.N.A. column basing on the report of the technical committee. However, demand notice was issued to the petitioner to pay excise duty on the weak spirit on the ground that after deducting the allowable wastage, excise duty is chargeable on the balance stock of rectified spirit put to redistillation in the E.N.A. column.