SHAKTI DISTRIBUT Vs. STATE OF BIHAR

JUDGEMENT

(1.) There are two applications under Articles 226 and 227 of the Constitution for quashing of demand notices issued to the petitioners. The spinal question calling for our decision in these two applications is whether the State is entitled to realise duty on foreign liquor lost in transit due to breakage of glass bottles. The relevant orders passed by the Excise Authorities being common (although the numbers are different in the two applications) reference to the annexures in C.W.J.C. No. 1346 of 1982 shall be made. The question falling for our consideration in the two applications being common, they are being disposed of by this common judgment.

(2.) The demand notice in C.W.J.C. No. 1348 of 1982 is Annexure -4 dated 26 -9 -1980 to this application. Annexure 4 -A dated 22 -3 -1982 is reminder or warning that the petitioner's licence was liable to be cancelled for failure to deposit in treasury the sum demanded by Annexure -4. By Annexure -5 dated 30 -3 -1982 the petitioners were informed by Excise Superintendent, Muzaffarpur that their licenece would not be renewed for the year 1982 -83 until the penalty levied by Annexure -4 was not deposited. Annexure -3 dated 14 -7 -1981 is the order of Collector, Muzaffarpur by which he rejected the appeal of the petitioners (in C.W.J.C. No. 1346 of 1982). Annexure -2 dated 11 -8 -1981 and Annexure -1 dated 23 -12 -1981, respectively are the orders of Commissioner of Excise and Board of Revenue, respectively.

(3.) The petitioners are licensees in respect of bonded warehouses in the town of Muzaffarpur. In terms of the licences the petitioners stored beer and India made foreign liquor (hereinafter referred to as T.M.F.L.'). They were granted separate licences in Form No. 1 prescribed by the rules made under the Bihar and Orissa Excise Act (hereinafter called 'the Act'). The petitioners were also granted licence in Form No. I -A which authorised them to deposit or keep, in approved warehouses liquor imported/ transported under bond. By Annexure -4 dated 26 -9 -1980 the duty on account of I.M.F.L. lost in transit to the tune of Rs. 26,810.94 and Rs. 26,961.90. These duties were demanded in respect of wastage of liquor during transit on account of breakage of glass bottles during the financial year 1979 -80. The petitioners claimed before Collector, Muzaffarpur in appeal that they were entitled to exemption from payment of duty on liquor transported in casks and drums. The claim of the petitioners did not find favour with him. The appeals were, therefore, dismissed by a common order dated 14 -7 -1981 (Annexure -3). The appeals before the Commissioner of Excise and Member Board of Revenue met a similar fate. Their orders are Annexures -2 and 1, respectively. Hence the present applications for quashing the demand notices Annexure -4, 4 -A and 5) and the orders of the Collector, the Commissioner and Member Board of Revenue.