State Cannot Levy Excise Duty on Liquor Wastage Post-Distillation u/s 27(1) Due to Non-Excisable Status.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Levy of Excise Duty - weak spirit, which was more than 2% allowable wastage - industrial alcohol not fit for human consumption - Perusal of Section 27(1) of the said Act would reveal that the State’s power to impose duty on import, export, transport and manufacture is only in respect of any excisable articles imported, exported, transported and manufactured. ‘Excisable article’ has been defined to be any alcoholic liquor for human consumption or any intoxicating drug. It is thus clear that even under the relevant statute, the State has power to levy excise duty only in respect of the alcoholic liquor for human consumption. - the State has no power to levy excise duty on wastage of liquor after distillation. - SC....