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TMI Blog1970 (8) TMI 30X X X X Extracts X X X X X X X X Extracts X X X X ..... ction was held intimated that the successful bidders will have to sell a prescribed minimum quantity of liquor in their shops and if they fail to take delivery of the prescribed minimum quantity of liquor, they will have to pay excise duty on the quantity of liquor which they failed to take delivery. On March 20, 1964, the Government, in the purported exercise of its powers under clauses (d) and (h) of section 62 of the Madhya Pradesh Excise Act, 1915 (II of 1915) (to be hereinafter referred to as " the Act "), issued the notification, No. 144401089/V-SR, amending the rules published on January 7, 1960. This notification prescribed that the conditions mentioned therein should be inserted in the licences to be issued to the successful bidder ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ese notices as well. It is contended on behalf of the appellants that excise duty is a tax. The same can be levied on the basis of a valid law. No tax can be levied on the basis of a contract nor can tax be levied by executive orders. Tax can only be levied by the Legislature. Hence the fact that clause 2(C) in the notification of March 20, 1964, has been made a part of the licence condition is immaterial. It was contended that the question for decision is whether the Government of Madhya Pradesh was entitled to amend its rules and add the impugned clause as a part of the licence conditions. The scheme of the Act is similar to the scheme of other excise Acts in this country. In the Act " excise duty " and " countervailing duty " have been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her parts of the country. Chapter V of the Act deals with Duties and Fees. That Chapter contains four sections, viz., sections 25, 26, 27 and 27A. Section 25 deals with duty on excisable articles. Section 26 prescribes the ways of levying such duty. Section 27 provides for payment for grant of leases--licence fee. Section 27A saves the duties that were being levied at the commencement of the Constitution. Herein we are not concerned with section 27A. Section 25 reads : " Duty on excisable articles.--(1) an excise duty or a countervailing duty, as the case may be, shall, if the State Government so direct, be levied on excisable articles-- (a) imported ; or (b) exported ; or (c) transported ; or (d) manufactured, cultivated or collected ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e quantity collected ; (b) on spirit or beer manufactured in any distillery established or any distillery or brewery licensed under this Act-- (i) in accordance with such scale of equivalents calculated on the quantity of materials used, or by the degree of attenuation of the wash or wort, as the case may be, as the State Government may prescribe, or (ii) by rate charged directly on the materials used ; (c) on tari, by a tax on each tree from which the tari is drawn. (2) where payment is made upon the issue of an excisable article for sale from a warehouse, it shall be at the rate of duty in force on the date of issue of such article from the warehouse. Section 27 says : " Payment for grant of leases : Instead of or in addition to an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ea or for any specified period ...... (h) prescribing the authority by the form in which and the terms and conditions on and subject to which any licence, permit or pass shall be granted, and may by such rules, among other matters-- (i) fix the period for which any licence, permit or pass shall continue in force, (ii) prescribe the scale of fees or the manner of fixing the fees payable in respect of any such licence, permit or pass. (iii) prescribed the amount of security to be deposited by holders of any licence, permit or pass for the performance of the conditions of the same ; (iv) prescribe the account to be maintained and the returns to be submitted by licence holders, and (v) prohibit or regulate the partnership in, or the trans ..... X X X X Extracts X X X X X X X X Extracts X X X X
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