UNITED BREWERY DISTILLERIES LTD Vs. STATE OF BIHAR

JUDGEMENT

(1.) This writ petition is directed against the order dated 24.1.1995 (Annexure-1), passed by the Excise Superintendent, Mirganj Distillery, whereby it has been called upon to deposit a sum of Rs. 26,138.75p., being the penal duty in terms of Section 27 of the Bihar Excise Act, 1915 (hereinafter referred to as the 'Act'), on rectified spirit.

(2.) A brief statement of facts essential for the disposal of this writ petition may be indicated. The Petitioner is the holder of licence in Form No. 29-A of the Act, and is, inter alia, engaged in manufacture of rectified spirit unfit for human consumption. The Petitioner had sold and supplied 1,66,350.00 London Proof Litres (hereinafter referred to as the 'LPL'), of rectified spirit to Serampur Distillery & Chemicals Co. Ltd., West Bengal. There was loss in transit on account of evaporation and leakage beyond the permissible limit, namely, 1045.55 LPL (wrongly states as 1065.55 LPL), which was allegedly in excess of the allowable wastage. The Excise Superintendent, therefore, served the impugned notice on the Petitioner to deposit a sum of Rs. 26,138.75p. as penal duty, which was deposited under protest on 13.2.1995. A photocopy of the challan is marked Annexure-B to the counter affidavit.

(3.) Learned Counsel for the Petitioner submits that rectified spirit is unfit for human consumption and, therefore, no excise duty within the meaning of the Act is leviable thereupon. It is used as raw material for manufacture of alcohol fit for human consumption and can be subjected to the duties of excise under the Act. He relies on the following reported judgments: