LOKOPKARAK PHARMACEUTICAL WORKS Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) PETITIONER-Lokopkarak Pharmaceutical Works Alwar which is a registered Firm and manufacturer of Indian Ayurvedic & Unani medicines having licence from the Excise Department under the Medicinal & Toilet Preparations (Excise Duties) Act, 1955 (for short Medicinal Act) has challenged imposition of excise duty under the orders dt. 26. 4. 84 & 15. 11. 84 (Ann. 15 & 16) passed by the Assistant Excise Officer Alwar & Excise Commissioner Udaipur (respondent Nos. 2 & 3), in respect of rectified spirit measuring 382 bulk litres.

(2.) THE facts giving rise to this petition are that admittedly the petitioner Firm received rectified spirit measuring 500 bulk litres with a strength of liquor as 64. 05 O. P. from Ganganagar Sugar Mills under Permit No. 986/11 dt. 24. 11. 1978 and which was transported to Alwar in the bonded warehouse, with a view to manufacture Unani & Ayurvedic Medicines and out of which, 118 bulk litres thereof were used in the manufacture of ayurvedic medicines, for which admittedly excise duty was paid by the petitioner Firm, and rest thereof viz. 382 litres rectified spirit continued to be stored in its godown (bond warehouse) under double lock-one key with excise department & another with the petitioner Firm.

(3.) EXCISE duty is levied & collected on certain goods as provided in Section 3 of the Medicinal Act which reads as under :- 3. Duties of excise to be levied & collected on certain goods- (1) There shall be levied duties of excise, at the rate specified in the Schedule, on all dutiable goods manufactured in India. (2) The duties aforesaid shall be leviable- (a) where the dutiable goods are manufactured in bond, in the State in which such goods are released from a bounded warehouse for home consumption, whether such State is the State of manufacture or not; (b) where the dutiable goods are not manufactured in bond, in the State in which such goods are manufactured. (3) Subject to the other provisions contained in this Act, the duties aforesaid shall be collected in such manner as may be prescribed. Explanation- Dutiable goods are said to be manufactured in bond within the meaning of this section if they are allowed to be manufactured without payment of any duty of excise leviable under any law for the time being in force in respect of alcohol, (narcotic drug or narcotic) which is to be used as an ingredient in the manufacture of such goods.