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TMI Blog1963 (10) TMI 2X X X X Extracts X X X X X X X X Extracts X X X X ..... e officer-in-charge of the distillery informed the petitioners that without a permit from the Excise Commissioner, U.P., Allahabad, "the quantity of power alcohol demand cannot be supplied, for power alcohol is for the purpose of the U.P. Excise Act, IV of 1910, Denatured Spirit, and under the Rules framed under the Indian Power Alcohol Act, denatured spirit may be given only under a permit or licence issued by the Excise Commissioner." 2.The petitioners then applied to the Excise Commissioner, U.P. praying that instructions be issued to the Central Distillery, Meerut, to issue to the petitioners the quantity of power alcohol demanded by them. It was claimed by the petitioners that the Central Government had control over the manufacture and distribution of power alcohol, and the petitioners having obtained a licence in Form L-6 for use of power alcohol for industrial purposes, there was nothing in the U.P. Excise Act or Rules made thereunder which authorised the Central Distillery, Meerut, or the Excise Inspector to refuse to honour the demand. The Excise Commissioner by his letter dated December 29, 1959, informed the petitioners that the licence in From L-6 granted under the Cen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... behalf, except under the authority and in accordance with the terms and conditions of a licence granted under the Act, engage, among other activities, in the production or manufacture or any process for the production or manufacture of any specified goods included in the First Schedule or of any specified component parts or ingredients of such goods. Section 37 invests the Central Government with power to make rules to carry into effect the purposes of the Act and in particular, amongst other purposes, to exempt wholly or in part the duties imposed by the Act. 5.By notification dated January 20, 1953, the Government of India, Ministry of Finance (Revenue Division), granted exemption from the payment of excise duty leviable on power alcohol under Section 3 of the Central Excises and Salt Act, 1944, provided that it was proved to the satisfaction of the Collector of Central Excise that such power alcohol was intended for use in the manufacture of Nitrocellulose Finishes, Lacquers and Thinners, and the procedure set out in Chapter X of the Central Excise Rules, 1944, was followed in respect of such power alcohol. 6.Rule 174 of the Central Excise Rules provides that every manufactur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntral Government. By Section 3(c) of the Act `power alcohol' was defined as meaning ethyl alcohol containing not less than 99.5 per cent, by volume of ethanol measured at sixty degrees Fahrenheit corresponding to 74.4 over proof strength. By Section 4 manufacture of power alcohol from any substance other than molasses or such other substance as may be specified by the Central Government was prohibited. By Section 5 the Central Government was authorised to regulate the production and disposal of power alcohol by any distillery situated in any area in which the section was for the time being in force. By Section 8 the Central Government was authoirsed by notification to direct that any power conferred by the Act, subject to such conditions, if any, as may be specified in the direction, be exercisable by such officer or authority subordinate to the Central Government or such. Provincial Government or such other officer or authority subordinate to a Provincial Government as may be specified in the direction. By Section 10 power was conferred upon the Central Government to make rules for the purpose of carrying into effect the provisions of the Act and in particular for certain specifie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n without payment of duty power alcohol for industrial purposes. But the issue of such a licence did not obviate the necessity of complying with the relevant provisions made under the Indian Power Alcohol Act, for the licence under the Central Excise Rules authorises the use of power alcohol obtained without payment of duty, but for obtaining power alcohol, the provisions of the Power Alcohol Act and the Rules have to be complied with. 10.The statutory provisions and the Rules issued thereunder which we have set out in detail clearly prescribe that power alcohol may be issued to a consumer direct from a distillery as provided by the proviso to Rule 33 of the Power Alcohol Rules, and to the issue of power alcohol from a distillery in the State of U.P., Chapter IX of the Excise Manual which contains the relevant rules framed under the U.P. Excise Act applies. 11.The right to obtain power alcohol directly from a distillery was therefore subject to the provisions of the Indian Power Alcohol Act, 1948, the Rules framed under that Act which incorporated therein the U.P. Excise Manual Chapter IX. The contention of the petitioners that since they obtained a licence in Form L-6 under the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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