TaxTMI 
TaxTMI 
2022 (4) TMI 1353
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....d by the Additional Commissioner & Appellate Authority, Commercial Tax, Indore in First Appeal No.293/Entry tax/2015 and (iii) order dated 25.06.2020 passed by the Madhya Pradesh Commercial Tax Appellate Board, Indore in Second Appeal No.A/442/CTAB/IND/16 disallowing the claim of exemption of entry tax on rectified spirit to the tune of Rs.15,26,36,500/- and imposing an interest amounting to Rs.1,66,447/-. 02. The facts of the case in short are as under: - 2.1. The appellant is a company registered under the provisions of the Companies Act, 1956 and is engaged in the business of potable alcohol / alcoholic liquor under the licences issued by the Government of Madhya Pradesh under the M.P. Excise Act, 1915. During the period from 01.04.2013 to 31.03.2014, the appellant purchased potable spirit to manufacture the liquor. Prior to 01.04.2013, the spirit was exempted along with liquor from entry tax under Entry No.2 of Schedule - I of the exemption list of the Entry Tax Act. According to the appellant, prior to 01.04.2013, the spirit was also under the category of goods falling under Schedule - I of the Value Added Tax Act (hereinafter referred to as VAT Act) and also under Entry No.....
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....an Made Foreign Liquor and Rectified Spirit being an excisable article under the M.P. Excise Act, it is exempted from payment of duty or tax under the Commercial Tax Act and VAT Act. This question has been answered against the Revenue and in favour of petitioners by us in a detailed judgment rendered today in W.P. No.2366/2016 - Gwalior Alcobrew Pvt. Ltd. Vs. State of M.P. & Others and we have held in the aforesaid case after detailed analysis of various judgments that foreign liquor manufactured in the State of M.P. and exported to other State is an excisable article and even though it is exempted from payment of excise duty but being an excisable good on which the State Government may levy excise duty under the Excise Act, recovery of Commercial tax or VAT tax is not permissible. We find that in all these petitions be it IMFL or Rectified Spirit till amendment brought about in Entry No.47 to Schedule-I of the VAT Act vide notification issued on 1.4.2013, the principles laid down by us in the case of Gwalior Alcobrew Pvt. Ltd. (supra) will apply. After 1.4.2013 the question of imposition of duty/ tax with regard to Rectified Spirit may be different. But in all these cases as the a....
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....s not justified in classifying the spirit either under Entry 47 of Schedule - I or Entry 6 Part - III-A of Schedule - II of the VAT Act because the liquor is not defined in the VAT Act, therefore, the definition of liquor can be borrowed from the M.P. Excise Act and according to which liquor means intoxicating liquor and includes the spirit of wine, spirit, wine, tari, beer, all liquid consisting of or containing alcohol. The spirit is also defined under Section 2(17) of the M.P. Excise Act as spirit means any liquor containing alcohol obtained by distillation whether it is denatured or not. 05. Learned Deputy Advocate General for the respondent has argued in support of the impugned orders and submits that no substantial questions of law are involved in this case. 06. We have heard learned counsel for the parties and perused the record. 07. According to the learned counsel appearing for the appellant, the liquor is not defined in the VAT Act hence the definition of liquor is liable to be borrowed from the M.P. Excise Act, 1915. The appellant is claiming exemption in payment of tax under the VAT Act on sale/import/export/manufacturing of Rectified Spirit mainly on the ground that....
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.... of the assessment year before 01.04.2013. After 01.04.2013, the issue came up for consideration before this Court in W.P. No.2170/2016 (M/s Pernod Ricard India Private Limited v/s The State of Madhya Pradesh & Others) decided on 29.04.2019. In this case, the Division Bench of this High Court has considered the definition of liquor as well as spirit defined under the M.P. Excise Act, 1915 and has held that the sale or purchase is of ENA/ Rectified Spirit the State will be within its competence to charge levy at the rate under residual entry. It has also been held that when the liquor is sold by a dealer who holds F.L.2/F.L.3/F.L.3A/F.L.4/F.L.4A license under M.P. Foreign Liquor Rules 1996, the tax is 5 %. Similarly, when it was sold by a dealer other than a dealer holding that license, the tax is 5% and these licences do not sell ENA/Rectified spirit under the licenses held by them, which are commodities different from 'liquor' sold under said licenses and the writ petition was accordingly dismissed. Paragraphs - 24 to 34 of the aforesaid order are reproduced below:- "[24] In the present case, liquor has been taxed @ 5% whereas, the Rectified Spirit/ Extra Neutral Alcoho....
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....snacks. This licence may be granted to restaurants having facilities of such scale and standard, as may be determined by the State Government. F.L.3 (Hotel Bar Licence). - F.L.3 licence holder may sell foreign liquor for consumption on the licensed premises to residents of such hotels for their own use or that of their guests and other casual visitors, with meals and snacks. This licence may be granted to hotels having both lodging and boarding facilities of such scale and standard as may be determined by the State Government. F.L. 3-A (Resort Bar Licence) : F.L.3-A licence holder may sell foreign liquor for consumption on the licensed premises to residents of such resort for their own use or that of their guests and other casual visitors with meals or snacks. This licence may be granted to resorts having both lodging and boarding facilities of such scale and standard, as may be determined by the State Government. F.L. 4 (Civilian Club Licence). - A civilian club holding F.L.4 licence may possess and sell foreign liquor for consumption on the licensed premises by bonafide members of such club or their guests. F.L. 4A (Commercial Club). - A commercial dub licence may be gran....