1975 (12) TMI 163

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....HINGAL, P.N., JJ. I. N. Shroff for the appellant A. K. Sen, Hargobind Misra, A. Raman, and S. S. Khanduja for the respondent JUDGMENT RAY, C.J. These appeals by certificate turn on the question whether the Government was right in making a demand of excise duty on liquor not lifted by the liquor contractors. The High Court relying on the decision of this Court in Bimal Chandra Ban....

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....ty to the extent of one sixth to one tenth of the whole of the amount of yearly PRATIKAR will have to be given". Pratikar is excise duty. This Court in the recent decision in Nashirwar v. State of Madhya Pradesh(2); Hari Shanker v. Deputy Excise and Taxation Commissioner(3) and Panna Lal & Ors. v. State of Rajasthan(4) held that the State has exclusive right to manufacture and sell liquor an....

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....that the lump sum amount stipulated under the agreement is not to be equated with issue price. The issue price is payable only when the contractors take delivery of a particular quantity of specified value of country liquor. The issue price relates only to liquor drawn by the contractors and does not pertain to undrawn liquor. This Court in Panna Lal's case (supra) said that "no excise duty is and....

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.... follows:-             "To suggest that the license obliges the contractors to pay excise duty on undrawn liquor is totally misreading the conditions of the license. The excise duty is collected only in relation to the quantity and quality of the country liquor which is drawn. No excise duty can be predicated in respect of undrawn liquor". ....