RANGER BREWERIES LTD. Vs. STATE OF H.P.

JUDGEMENT

(1.) Whether the State is justified in levying excise duty/duty on the wastage of spirit in the process of re-distillation in the distilleries of the Petitioner, is the question that arises for consideration in these cases. It is the contention of the Petitioner that there is no authority for the State either under the Act or the Rules enabling the State to levy duty for the wastage. According to the State, wastage is not contemplated in the process of re-distillation at the relevant time and hence the same is liable to duty, if not excise duty.

(2.) The Petitioner has been supplied varying quantities of spirit for re-distillation for the purpose of manufacturing liquor, fit for human consumption. It has to be specifically noted at the outset that all these cases pertain to the levy of duty prior to 1999. The significance of the year 1999 is that the wastage in re-distillation was prescribed for the first time under the Rules, only w. e. f. 15.10.1999. After the process of re-distillation, the entire quantity of spirit admittedly is not accounted. Therefore, the State has taken the stand that total quantity of spirit supplied minus the total quantity of alcoholic liquor fit for human consumption has to be taken to be wastage and that wastage is liable to duty.

(3.) Entry 84 of Union List 1 of Schedule VII of the Constitution of India provides for:-