CIVIL WRIT JURISDICTION CASE No.1572 OF 1995 ******* In the matter of an application under Articles 226 and 227 of the Constitution of India. ******* S.K.G. Sugar Ltd., Abhay Bhawan, Frazer Road, P.S. Kotwali, District- Patna, through its President- Debdas Chatterjee, son of late N.P. Chatterjee, residing at 151, Pataliputra Colony, P.S. Shree Krishnapuri, District- Patna. ….. Petitioner. Versus 1. THE STATE OF BIHAR, through the Secretary to the Government of Bihar, Department of Excise & Prohibition, Vikas Bhawan, Patna. . 2. The Member, Board of Revenue, Bihar, Main Secretariat, Patna. 3. The Collector, West Champaran. 4. The Superintendent of Excise, Lauriya Distillery, Lauriya, P.S. Lauriya, District- West Champaran. ….. Respondents. ******* For the Petitioner : Mr. G.P. Bimal & Mr. Satyabir Bharti, Advocates. For the Respondents: Mr. Anil Kumar, A.C. to S.C.-III. ******* P R E S E N T THE HON'BLE MR. JUSTICE SUDHIR KUMAR KATRIAR THE HON'BLE MR. JUSTICE BIRENDRA PRASAD VERMA ******* S.K. Katriar, J. This writ petition is directed against the order dated 17.8.1994 (Annexure-1), passed by the Excise Superintendent, Lauriya Distillery, West Champaran, whereby it has been called upon to deposit a sum of Rs.20,947.50p., being the penal duty in 2 terms of Section 27 of the Bihar Excise Act 1915 (hereinafter referred to as the ‘Act’), on rectified sprit. 2. A brief statement of facts essential for the disposal of this writ petition may be indicated. The petitioner was the holder of licence in Form No.28-A of the Act, and was engaged in manufacture of rectified spirit. The petitioner had sold and supplied 1,64,802.00 London Proof Litres (hereinafter referred to as the ‘LPL’), of rectified spirit to Serampur Distillery & Chemicals Co. Ltd., West Bengal. There was allegedly loss in transit on account of evaporation and leakage beyond the permissible limit, namely, 837.9 LPL, which was in excess of the allowable wastage. The Excise Superintendent, therefore, served the impugned notice on the petitioner to deposit a sum of Rs.20,947.50p. as penal duty, which was deposited by the petitioner under protest. 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. Only after it is used as raw material for manufacture of alcohol that it is rendered fit for human consumption and can be subjected to the levy under the Act. He relies on the following reported judgments: (i) New Swadeshi Sugar Mills Ltd. vs. State of Bihar, 1983 PLJR 105. 3 (ii) The same was upheld by the Supreme Court, by its order dated 24.08.1994, in State of Bihar vs. New Swadeshi Sugar Mills Ltd. & Anr. (2003)11 SCC 478. (iii) State of Bihar vs. Industrial Corporation Pvt. Ltd. And others, (2003)11 SCC 465 (paragraph 24). (iv) State of U.P. and others vs. Modi Distillery and others, (1995)5 SCC 753. and (v) Mc.Dowell & Company Ltd. Vs. State of Bihar and others, 2006 (4) PLJR 269 (paragraph 13). 4. We have perused the materials on record and considered the submissions of learned counsel for the parties. Identical issues came up for consideration before us in C.W.J.C. No.8691 of 1994 (Mc Dowell & Company Ltd. Vs. The State of Bihar and others), which has been allowed with interest at the rate of 18%, and costs quantified at Rs.25,000/- (Twenty-five thousand), by judgment dated 17.8.2010, on just the same grounds. The petitioner is also supported by the judgment of the learned Single Judge of this Court in S.K. Sugar Ltd. Vs. State of Bihar and others, reported in 1992 (2) B.L.J., 587. It has been held in these judgments that rectified spirit is unfit for human consumption and cannot, therefore, be exigible to excise duty under the Act. 5. In the result, this writ petition is allowed, and the impugned notice dated 17.8.1994 (Annexure-1), is hereby set 4 aside. The Superintendent of Excise, Lauriya Distillery, West Champaran, is hereby directed to refund the said sum of Rs.20,947.50p, if already deposited. (S.K. Katriar, J.) Birendra Prasad Verma, J. I agree. (Birendra Prasad Verma, J.) Patna High Court, Patna. Dated the 31st day of August, 2010. S.K.Pathak/ (NAFR)