SKGSUGARLIMITED Vs. STATE OF BIHAR

JUDGEMENT

(1.) The petitioner holding a licence in Form 28 of the Bihar Excise Act, 1915 (for short, the Act) for manufacture of spirit in its distillery (for supply of the same for further manufacture of country spirit) has challenged actions of the respondents in permitting those distilleries having licence in Form 28-A for the manufacture of spirit in their distilleries (for use in the manufacture of chemical and for Industrial, scientific and other purposes) for use of the same now also for the manufacture of country liquor. The petitioner says that only that distillery having licence in Form 28 has exclusive privilege to supply the spirit for manufacture of country liquor. The Commissioner of Excise, Bihar, did not agree with the submissions of the petitioner holding that there was no restriction limiting the supply of spirit only from distilleries having licence under Form 28 and excluding the distilleries under Form 28-A. Aggrieved the petitioner filed a revision under Section 8(3) of the Act before the Board of Revenue, Bihar. The Board held that the phrase "and other purposes" occurring in the text at the top of Form 28-A did not exclude supply of spirit by holders of licences in Form 28-A to persons holding exclusive privilege under Section 22 of the Act for wholesale supply of country spirit. This Section 22 provides for grant of exclusive privilege of manufacture and sale of country liquor, intoxicating drugs, denatured spirit or any other intoxicant. The Board, therefore, dismissed the revision-petition. These are the orders which are challenged before us in this writ application.

(2.) Mr. Giri, learned counsel appearing for the petitioner, submitted that the phrase "and other purposes" in Form 28-A has to be read ejusdem generis and that will mean that the supply of spirit manufactured in the distillery holding licence under Form 28-A could be made only for the manufacture of chemical and for industrial and similar purposes and not for the manufacture of country liquor. It further submitted that the law prohibited the use of industrial alcohol (spirit) which was manufactured by holder of licence under Form 28-A of production of country liquor.

(3.) As far as the first point is concerned, if we refer to rule 3-A (b) of the Rules framed by the Board of Revenue under Section 90 of the Act, it will appear that the argument of Mr. Giri is correct. Under this rule, distilleries may be opened for (1) supply of country spirit, (2) supply of foreign liquor, (3) supply of spirit for the manufacture of chemicals, medicated articles, etc. or for other industrial purposes; and (4) any or all of the above purposes combined. Referring to serial number (3) above, it would appear that Form 28-A is for manufacture of spirit for use in the manufacture of chemical and for industrial, scientific and for other industrial purposes. This we think how the terms "for other purposes" as appearing in the title of Form 28-A should be read which is in consonance with the term "for other industrial purposes" as given in serial (3) of Rule 3-A (b) of the Rules.