INDUSTRIAL ORGANICS LIMITED Vs. STATE OF PUNJAB

JUDGEMENT

(1.) this petition filed under cprays for construing Rule 22 of the Punjab Liquor Permit and Pass Rules, 1932 (for brevity, 'the Rules') as in-applicable to the industrial/denatured spirit. A further prayer has also been made for quashing notification No. G.S.R. 25/P.A. 1/14/Ss. 334 and 59/Amd. (22)/2004, dated 29.3.2004, enhancing the permit fee for issue of permit for denatured spirit from 30 paisa per bulk liter to 60 paisa per bulk liter by amending the Rules (P-1). Further directions have also been sought commanding the respondents not to charge any permit fees on denatured spirit under amended Rule 22 of the. Rules. Still further it has been prayed that the respondents be directed to refund the permit fees with interest already collected on denatured spirit pursuant to the aforementioned impugned Rule 22 of the Rules and impugned notification dated 29.3.2004 (P-1).

(2.) The petitioner is a public limited Company incorporated under the Companies Act, 1956. At the time of filing of writ petition, the name of the petitioner-company was 'M/s Industrial Organics Limited', however, during the pendency of the present proceedings it has been re-christened as 'IOL Chemicals and Pharmaceuticals Limited', with effect from 5.12.2006. The petitioner-company is engaged in manufacture of organic chemicals like acetic acid, ethyl acetate and acetic anhydride, which are used in pharmaceutical industry and also in manufacture of basic chemicals. In the manufacturing process of various chemicals including industrial alcohol 'denatured spirit is used as raw material. As pet its requirements, the petitioner-company procures denatured spirit from within the country and also imports the same. For procuring, possession and storage of denatured spirit either from within the country or through imports, a permit in Form L-42A under Rule 22 of the Rules is required to be obtained from the respondent authorities.

(3.) On 19.2.2004, the respondent State announced its Excise Policy for the year 2004-2005 under the provisions of the Punjab Excise Act, 1914 (for brevity, 'the Excise Act), specifying the rates of permit fees for industrial alcohol and denatured spirit (P-2). AS per Annexure-I appended to the Excise Policy 2004-2005, following rates of permit fees has been prescribed:- <FRM>JUDGEMENT_1069_TLP&H0_2011_1.html</FRM>