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TMI Blog1973 (3) TMI 150X X X X Extracts X X X X X X X X Extracts X X X X ..... ayment of export duty as required by Rule 631 of the Rules framed under the Act. On checking by the Punjab Excise Authorities it was found that in 7 cases the wastage was in excess of the maximum permissible limits. On this excess amount of wastage of rectified spirit excise duty was levied under Rule 814 at the highest rate. Seven demand notices were issued by the Excise Commissioner to the appellants for recovery of this duty. The demand notices are Annexures 1 to 7 to the writ petition. The appellants filed a revision before the State Government against the levy of excise duty, but the revision was rejected. The appellants thereupon filed a writ petition challenging the demand notices on various grounds. None of the grounds found favour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t for human consumption at the stage of manufacture. 7. We have, therefore, to see whether rectified spirit as manufactured by the appellants was intended or meant for human consumption. In Appendix H Volume II of the U.P Excise Manual printed at page 152 the specifications for rectified spirit are set out. It lays down that there should be two grades of rectified spirit, namely, grade A for use as a re-agent for pharmaceutical and medicinal purposes and for the production of potable alcoholic liquors and grade B for other industrial uses. This clearly shows that in two grades; neither of which is meant directly for human consumption. It, thus, appears that rectified spirit is not manufactured for direct human consumption. 8. Recti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that rectified spirit is not an alcoholic liquor for human consumption and that the State Legislature has no right to impose any excise duty thereon. 11. In our opinion, rectified spirit is not an alcoholic liquor for human consumption and is not an excisable article under the U.P Excise Act. No excise duty could be legally imposed upon rectified spirit. The duty imposed by the Commissioner of Excise on the rectified spirit produced and exported by the appellants was without the authority of law. The demand notices issued by the Excise Commissioner are liable to be quashed. 12. The appeal is, accordingly, allowed. The judgment of the learned Single Judge is set aside, the writ petition is allowed and the seven demand notices Anne ..... X X X X Extracts X X X X X X X X Extracts X X X X
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