IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE T.R.RAMACHANDRAN NAIR MONDAY, THE 26TH JULY 2010 / 4TH SRAVANA 1932 WP(C).No. 8272 of 2008(I) ------------------------------------ PETITIONER(S): ----------------------- SOUTHERN UNION PHARMACEUTICALS KERALA (P) LTD., MUSEUM ROAD, THRISSUR, REPRESENTED BY ITS MANAGING DIRECTOR, P.J. PONNAPPAN,MUSEUM ROAD, THRISSUR. BY ADV. SRI.S.RAMESH BABU RESPONDENT(S): ------------------------- 1. STATE OF KERALA, REPRESENTED BY THE SECRETARY, EXCISE DEPARTMENT, SECRETARIAT, THIRUVANANTHAPURAM. 2. EXCISE COMMISSIONER, THIRUVANANTHAPURAM. 3. EXCISE INSPECTOR, SOUTHERN UNION PHARMACEUTICALS KERALA (P) LTD., MUSEUM ROAD, THRISSUR. 4. SPECIAL TAHSILDAR (REVENUE RECOVERY), THRISSUR. R1 TO R4 BY GOVERNMENT PLEADER SMT.SUDHA DEVI THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 26/07/2010, ALONG WITH WPC NO. 8115 OF 2008 WPC NO.1411 OF 2008 THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: tss T.R. Ramachandran Nair, J. - - - - - - - - - - - - - - - - - - - - - - - - W.P.(C) Nos.1411/2008-R, 8115/2008-N and 8272/2008-I - - - - -- - - - - - - - - - - - - - - - - - - - - Dated this the 26th day of July, 2010. JUDGMENT The main challenge in these writ petition is against the liability to pay duty on excess wastage of spirit under Rule 13 of the Kerala Rectified Spirit Rules, 1972. The petitioners are challenging the notices of demand for duty on the ground that the State Government has no power to levy excise duty on rectified spirit. It is submitted by the learned counsel for the petitioners that the issue is covered in favour of the petitioners, in the light of the decision of a Division Bench of this Court in State of Kerala and others v. K.S. Distillery and others (2010 (2) KHC 369). The Division Bench followed various decisions of the Apex Court and held that State can levy excise duty only on potable liquor fit for human consumption and as rectified spirit does not fall under that category, the State Legislature cannot impose any excise duty. Ext.P3 is another judgment of the Apex Court on the same issue as raised herein. The Division Bench has also directed that the amount, if any, paid by the respondent in the Writ Appeal shall be refunded to him without any further delay. WPC 1411/08, 8115/08 & 8272/08 2 Since the issue is covered in favour of the petitioners, the writ petitions are allowed. The impugned demand notices are quashed. The amounts, if any, collected from the petitioners will be refunded to them in accordance with law, expeditiously. No costs. (T.R. Ramachandran Nair, Judge.) kav/