Awadh Associates Pvt. Limited vs The State of Bihar and Others

R.M. Doshit, C.J.—This Petition under Article 226 of the Constitution is filed by the manufacturer of liquor against communication dated 24th November, 2012 issued by the Superintendent of Excise, Vaishali. Under the impugned communication, the petitioner has been called upon to pay a sum of Rs. 13,01,783.00 being the amount of excise duty over 18596.9 London Proof Liters (LPL) of spirit. Learned advocate Mr. Satyabir Bharti has appeared for the petitioner. He has submitted that no excise duty is payable on the rectified spirit, which is not fit for consumption by the human beings. It appears that under instructions of the concerned Secretary, the Superintendent of Excise has, without application of mind, levied the duty of Rs. 13,01,783.00 upon the quantity of spirit lost by the writ petitioner in transit or otherwise.

Learned Principal Additional Advocate General Mr. Lalit Kishore has appeared for the respondent State of Bihar. He has submitted that the petitioner should approach the Commissioner of Excise. The petitioner should have first answered the communication issued by the Superintendent of Excise. The Petition is premature.

The impugned communication is ex-facie illegal. If at all the petitioner were in arrears of payment of excise duty, a proper procedure under the Bihar Excise Act, 1915 ought to have been initiated. Instead, the Superintendent of Excise has resorted to a short-cut under the instructions of the concerned Secretary. The action of the Superintendent of Excise in demanding the excise duty on rectified spirit without adjudication and without following proper procedure is manifestly wrong, ex-facie illegal and is unsustainable.

For the aforesaid reasons, the impugned communication dated 24th November, 2012 is quashed and set aside. Petition stands allowed.