https://www.taxtmi.com/caselaws?id=298470 State competence does not extend to levying excise duty on rectified spirit, treated as industrial alcohol, even if it may later be converted into potable liquor. The governing constitutional position, as reflected in later three-Judge decisions, allows regulation of industrial alcohol to prevent diversion to human consumption but bars a direct excise levy on industrial alcohol itself. A demand described as duty for transit loss could not be sustained as penalty or compensation where its true character remained an unconstitutional excise impost. On that basis, the demand notices were unsustainable and liable to be quashed. en-us Mon, 11 Apr 2005 00:00:00 +0530 Wed, 03 Nov 2021 10:50:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=298470 State competence does not extend to levying excise duty on rectified spirit, treated as industrial alcohol, even if it may later be converted into potable liquor. The governing constitutional position, as reflected in later three-Judge decisions, allows regulation of industrial alcohol to prevent diversion to human consumption but bars a direct excise levy on industrial alcohol itself. A demand described as duty for transit loss could not be sustained as penalty or compensation where its true character remained an unconstitutional excise impost. On that basis, the demand notices were unsustainable and liable to be quashed. Case-Laws Indian Laws Mon, 11 Apr 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=298470