1988 (2) TMI 426

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....is against the decision of the High Court of Allahabad dated 2nd of November, 1987. The question involved here is regarding the levy and realisation of octroi duty by the Nagar Mahapalika, Bareilly in Uttar Pradesh. Kasturi Lal Satantra Kumar and his partner, respondents herein, by a bid in the auction held for retail vend of country liquor for excise year 1987-88 ending on March 31, 1988 obtained the necessary licence under the U.P. Excise Act for a group of shops known as Faridpur Group in the district of Bareilly. The auction was held in the month of March, 1987. One of the conditions of the auction which also formed part of the licence, was that the licensee would obtain supply of country liquor for retail vend from the bonded warehouse....

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....s foreign imported liquor or all kinds of wines made in India. The base for this contention is that for foreign liquor or wine rectified spirit is used. Reliance was placed on a decision of this Court in the State of U.P. v. Synthetics and Chemicals Ltd. AIR 1980 SC 614, where this Court observed that the term "liquor" in the various Abkari Acts in the Provinces of India would not only cover those alcoholic liquids which are generally used for beverage purposes and produce intoxication but also all liquids containing alcohol. It is, therefore, submitted that the payment of octroi duty could not be avoided by the respondents saying that the plain country spirit was not liquor in the sense that it was not fit for human consumption at the stag....

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.... use as articles for lighting, fuel, washing and lubricants at the low rate of Re. 0.05 per litre while liquor brought within its limits for use as an article of intoxication was intended to be subjected to levy of octroi duty at the higher rate of Re. 1 per litre. Class VI contains the following items: "Class VI-Tobacco and other intoxicating goods:   1. Field dried tobacco, its chura and roots ordinary tobacco for eating and Huqqa.   2. Scented tobacco for eating and smoking, Qimam, Surti, Sugni.   3. Leaves of bidi.   4. Bidi tobacco, finished bidi, prepared khamira tobacco. 5. Cigarette, cigar, foreign type manufactured tobacco which is smoked through cigarette and pipe, cigarette paper, pipe and....