https://www.taxtmi.com/caselaws?id=219813 State excise duty cannot be levied on rectified spirit intended for industrial use, because the State's charging power extends only to alcoholic liquor for human consumption. A demand based on transit loss requires a finding that the spirit was diverted into potable liquor, and no such finding was recorded. Rule 633(7) of the Uttar Pradesh Excise Manual requires prior adjudication of breach of bond conditions and quantification before recovery of penalty or interest. Because recovery entails civil consequences, a show-cause notice and reasonable hearing are mandatory unless excluded. The demand and recovery were set aside, with remand for fresh decision after hearing. en-us Wed, 06 Jul 2011 00:00:00 +0530 Thu, 11 Jan 2024 10:08:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=219813 State excise duty cannot be levied on rectified spirit intended for industrial use, because the State's charging power extends only to alcoholic liquor for human consumption. A demand based on transit loss requires a finding that the spirit was diverted into potable liquor, and no such finding was recorded. Rule 633(7) of the Uttar Pradesh Excise Manual requires prior adjudication of breach of bond conditions and quantification before recovery of penalty or interest. Because recovery entails civil consequences, a show-cause notice and reasonable hearing are mandatory unless excluded. The demand and recovery were set aside, with remand for fresh decision after hearing. Case-Laws VAT and Sales Tax Wed, 06 Jul 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=219813