2018 (4) TMI 645

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....s of liquor exceeding Rs. 20,000/- 2. The assessee in the present case is a partnership firm which is engaged in the business of trading in liquor. The return of income for the year under consideration was filed by it on 29.09.2013 declaring a total income of Rs. 4,60,810/-. As noted by the A.O. during the course of assessment proceedings, the assessee firm had made purchases of Rs. 1,29,53,207/- from M/s. Eastern Distilleries and Chemicals Ltd. and payments against the same were made by depositing cash directly in the bank account of M/s. Eastern Distilleries and Chemicals Ltd. in the sums exceeding Rs. 20,000/-. According to the A.O., the said payments were made by the assessee in contravention of Section 40A(3) of the Act and since the ....

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....Warehouse", under Rule 2(vii) of the W.B. Excise Rules, 2005, means the warehouse for supply of country spirit to retail vendors, established at convenient places by the Commissioner at the expense of the State Government, or at the expense of a person to whom the exclusive privilege of supplying or selling country spirit by wholesale has been granted under section 22 of the Act, or of a licensed wholesale vendor of country spirit. The above definition makes it clear that the 'warehouse' referred to under the State Excise Rules is under the direct control and authority of the Commissioner of State Excise because it is established by the Commissioner of State Excise and as such is a State Government establishment. It is also perti....

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.... (e) of manufacturing and supplying by wholesale and selling retail, any country liquor or intoxicating drug within any specified local area: Provided that public notice shall be given to the intention to grant any such exclusive privilege. and that any objections made by any person residing within the area affected shall be considered before an exclusive privilege is granted. (2) No grantee of any privilege under sub-section (1) shall exercise the same unless or until he has received a license in that behalf from the Collector or the Excise Commissioner. Hence it could be safely concluded that M/s. Asansol Bottling & Packaging Co. Pvt Ltd (Bottling Plant) is a warehouse within the meaning of Rule 2(vii) of the Excise Rules 2005 ....