From Our Bureau
NEW DELHI: The Supreme Court has held that the state government can levy excise duty only on the alcohol meant for human consumption and not on the wastage of alcohol after distillation in Utkal Distilleries in Odisha.
A Bench of Justices L Nageswara Rao and Bhushan R Gavai based its judgment on Thursdsay on the ruling of a 7-judge Constitution Bench of the top court and a 3-judge bench decision in case of the Modi Distillery.
The Odisha government had granted a licence to the distillery to manufacture, bottle and blending of the Indian Made Foreign Liquor (IMFL). The distillery’s case was that certain weak spirit is generated in the manufacture of IMFL which is not potable and even the state government had allowed 2% wastage.
The state government, however, sent several notices to pay excise duty on the weak spirit found to be more than 2% permissible wastage. The Orissa High Court stayed the demand notices, leading to the present appeal in the top court.
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