Court quashes excise duty on Extra Neutral Alcohol, emphasizes lack of legislative competence

The court allowed the application for pleading amendments and impleadment. It declared the imposition of excise duty on Grain Extra Neutral Alcohol post-enforcement of specific Acts as ultra vires, quashing related notifications and assessment orders. The court emphasized the State's lack of legislative competence to tax Extra Neutral Alcohol, ruling contractual agreements cannot override constitutional provisions. Additionally, it quashed a Government Order authorizing excise duty/penalty on transit loss of the alcohol, directing refunds for payments made post a specific date. The writ petition was allowed without costs.

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Issues:
1. Amendment application seeking amendments to pleadings, grounds, and relief claimed.
2. Impleadment application.
3. Challenge to imposition of excise duty on Grain Extra Neutral Alcohol post enforcement of UPGST Act 2017 and Central GST Act 2017.
4. Legislative competence of the State to impose tax on Extra Neutral Alcohol.
5. Quashing of Government Order authorizing levy of excise duty/penalty on transit loss of Grain Extra Neutral Alcohol.

Analysis:
1. The judgment addressed two applications - one for amendment and the other for impleadment. The court allowed the amendment application seeking changes to the pleadings and relief claimed, citing a previous decision on a similar controversy. The impleadment application was also allowed, directing the necessary action to be taken.

2. The main issue revolved around the imposition of excise duty on Grain Extra Neutral Alcohol post the enforcement of specific Acts. The court referred to a previous order in a similar matter and concluded that the State lost its legislative competence to impose such duties post a constitutional amendment. The court declared the imposition of excise duty on such alcohol as ultra vires and quashed related notifications and assessment orders.

3. The judgment further discussed the legislative competence of the State to impose taxes on Extra Neutral Alcohol. Referring to past judgments, the court emphasized that the State cannot claim to have the authority to levy excise duty on such alcohol if it is not considered potable liquor. The court held that contractual agreements cannot override constitutional provisions or statutory laws in this regard.

4. Lastly, the court addressed the quashing of a Government Order that authorized the levy of excise duty/penalty on transit loss of Grain Extra Neutral Alcohol. The court ruled in favor of the petitioner, quashing the demand of excise duty/penalty and directing refunds for amounts paid post a specific date. The writ petition was allowed with no costs imposed.

This comprehensive analysis covers the various issues addressed in the judgment, providing a detailed overview of the court's decisions and reasoning.

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