Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | excise |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Madhya Pradesh Excise Act, 1915: Sections 13,18,25,27,28 and 62(2)(h). Madhya Pradesh Brewery Rules, 1970: Rule 22-Nature of levy under and validity of-Breweries- Appointment of Excise Officers as Incharge of breweries- Provision for pay of such Officers- Rule providing that their pay should be met by State but when the charges exceed five per cent of the duty leviable the excess shall be realised from the brewer-Rule 22 held ultra vires and beyond the Rule making power of State-Levy under Rule 22 ht;ld as additional exCise duty not actually due and not authorised by Section 25.Rule 22 of the Madhya Pradesh Brewery Rules, 1970 empowers the Excise Commissioner to appoint an officer-in-charge of the brewery and to appoint such other officers of the excise department as he may deem fit to be incharge of the brewery with the object of exercising a control over the breweries. It further provides that the pay of all such officers shall be met by the Government but in case the annual charges and pay of such officers exceed 5% of the duty leviable on the issue made from the brewery to the districts within the State then the excess shall be realised from the brewer. Demands raised under the said Rule on the appellant-brewery were challenged by it and a Division Bench of the Madhya Pradesh High Court upheld the same holding that (i) the demand under Rule 22 was in the nature of a condition of licence for brewery; and (ii) Section 62(2)(h) read with Section 28 of the Madhya Pradesh Excise Act, 1915 was wide enough to enable the State Government to make the impugned rule as a condition of the licence. In appeal to this Court, it was contended on behalf of the appellant brewery that the excise duty leviable under the Act was a tax imposed by the State Legislature in exercise of its plenary powers and there cannot be a further demand, which is in the nature of an additional duty, by means of a rule. On behalf of the, State it was contended that the demand under Rule 22 was nothing but a further fee or additional consideration, apart from Licence fee, which was neither a further duty nor a further tax and the demand was referable to sections 27 and 28 of the Excise Act. |
Judge | Honble Mr. Justice M.M. Punchhi |
Neutral Citation | 1992 INSC 113 |
Petitioner | Lilasons Breweries (pvt.) Ltd. |
Respondent | State Of Madhya Pradesh And Ors. |
SCR | [1992] 2 S.C.R. 595 |
Judgement Date | 1992-04-21 |
Case Number | 1265 |
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