9911796707
TMI Blog1996 (11) TMI 447X X X X Extracts X X X X X X X X Extracts X X X X ..... he Act read with Section 59 of Punjab Breweries Rules, 1932 (for short, the Rules), came to the conclusion that it is exigible to duty at the stage when it is in fermentation, i.e., wort in terms of Rule 10(3.4). Calling that decision in question, this appeal came to be filed. With a view to appreciate correctness of the view taken and having heard the learned counsel for the parties, it is necessary to look into the relevant provisions of the Act and the Rules. Chapter I, Section 3 of the Act defines various words and phrases in the Act. Section 3(1) defines "Bear" to include ale, porter, stout, and all other fermented liquors made from malt. "Liquor" has been defined under Section 3(14) of the Act to mean "intoxicating liquor and included all liquid consisting of or containing alcohol; also any substance which the State Government may by notification declare, to be liquor for the purpose of this Act". "Excisable article" has been defined in Section 3(6) to mean any alcoholic liquor for human consumption; or any intoxicating drug. "Excise duty" and "counervailing duty" as defined in Section 3(6-b) would mean any such excise duty or countervailing duty, as the case may be, as is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fter this it is transferred to the formentation tanks where Yeast is added and primary fermentation is carried out at controlled temperature. After attenuation (Diminution of density of "Wort" resulting from its fermentation) is reached for fermented wort is centrifuged and transferred to the storage vats for secondary fermentation. After secondary fermentation is over in the storage vats, is filtered twice-first through the rough filter press and then through the fine filter press and received in the bottling tanks. it is in bottling tanks that the loss of the Carbon Dioxide Gas is made up and bulk beer is drawn for bottling. It is filed into the bottled and then last process of pasteurisation is carried out to make it ready for packing and marketing. Till and liquor is removed from the vats and undergoes the fermentation process as mentioned above the presence of alcohol is nil." Excisable article would mean any alcoholic liquor for human consumption or any intoxicating drug. The levy or impost of excise duty would be only on alcoholic liquor for human consumption or for being produced in the brewery. Beer would mean fermented liquor from malt, when it is potable or in consumab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the first issue is whether Entry 8 in List II of the Seventh Schedule of the Constitution, covers alcohol unfit for human consumption. The second issue, according to him is whether assuming that the entry does not include alcohol unfit for human consumption, its scope in that respect is curtailed because of item 26 of the Schedule to the IDR Act, 1951. The third issue, according to him, is, whether having regard to Entry 51 in List II, the State can (a) impose regulations by creating economic disincentives for consumption of drinkable alcohol, and (b) prevention of misuse of nondrinkable alcohol for consumption. Only in two cases the question of industrial alcohol had come up for consideration before this Court. One is the present decision which is under challenge and the other is the decision in Indian Mica and Micanite Industries Ltd. case. In the latter case, in spite of the earlier judgments including Barucha case, denatured spirit required for the manufacture of micanite was not regarded as being within the exclusive privilege of the State. It appears that in that decision at p.321 of the report (SCC p.238), it was specifically held that the power of taxation with r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st I were generally within the taxing power of the Central Legislature. The State Legislature had limited power to impose excise duties. That power was circumscribed under Entry 51 of List II. It had to be borne in mind that, by common standards, ethyl alcohol (which 95 per cent strength) was an industrial alcohol and was not fir for human consumption. The ISI specifications had divided ethyl alcohol (as known in the trade) into several kinds of alcohol. Beverages and industrial alcohols were clearly and differently treated. Rectified spirit for industrial purposes was defined as spirit purified by distillation having a strength not less than 95 per cent by volume of ethyl alcohol. Dictionaries and technical books showed that rectified spirit (95 per cent) was an industrial alcohol and not potable as such. It appeared, therefore, that industrial alcohol, which was ethyl alcohol (95 per cent), by itself was not only nonpotable but was highly toxic. The range of potable alcohol varied from country spirit to whisky and the ethyl alcohol content thereof varied between 19 to about 43 per cent, according to the ISI specifications. In other words, ethyl alcohol (95 per cent) was not an ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
