M/S MOHAN MEAKIN LTD. versus EXCISE AND TAXATION COMMISSIONER, HIMACHAL PRADESH AND ORS.

M/S MOHAN MEAKIN LTD. versus EXCISE AND TAXATION COMMISSIONER, HIMACHAL PRADESH AND ORS.

The levy of excise duty under Section 31 of the Punjab Excise Act, 1914, is attracted only when beer reaches the stage of a finished product capable of human consumption, i.e., after it passes through the fine filter press and is received in the bottling tank or is removed from the place of storage. Excise duty is not exigible at the intermediate 'wort' (fermentation) stage which does not contain alcohol for human consumption.

Parties
Appellant: Mohan Meakin Ltd.; Respondents: Excise and Taxation Commissioner, Himachal Pradesh and Ors.
Jurisdiction
India
Judgment Date
27 November 1996
Procedural Posture
Civil Appeal / Appeal by Special Leave From the Judgment and Order Dated 2.7.80 of the Himachal Pradesh High Court in W.p. No. 121 of 1979
Outcome
Appeal allowed
Legal Topics
Excise Duty on Beer, Timing of Excise Duty Levy, Interpretation of 'excisable Article', Stage of Manufacture Relevant for Excise
Tax Law Excise Law Excise Duty on Beer Timing of Excise Duty Levy Interpretation of 'excisable Article' Stage of Manufacture Relevant for Excise

Case Brief

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Parties

Mohan Meakin Ltd.

Appellant

Excise and Taxation Commissioner, Himachal Pradesh and Ors.

Respondents

Procedural Posture

Civil Appeal / Appeal by Special Leave From the Judgment and Order Dated 2.7.80 of the Himachal Pradesh High Court in W.p. No. 121 of 1979

Legal Issues

  1. 1 At what stage is beer exigible to excise duty under the Punjab Excise Act, 1914?
  2. 2 Whether duty is chargeable at wort (fermentation) stage or at the stage of finished beer?

Ratio Decidendi

The levy of excise duty under Section 31 of the Punjab Excise Act, 1914, is attracted only when beer reaches the stage of a finished product capable of human consumption, i.e., after it passes through the fine filter press and is received in the bottling tank or is removed from the place of storage. Excise duty is not exigible at the intermediate 'wort' (fermentation) stage which does not contain alcohol for human consumption.

Court Disposition

Appeal allowed

Orders

  • Respondents are entitled to collect excise duty from the appellant only when the finished product (beer) is removed from the place of storage or warehouse as per Section 23 of the Act read with the Rules.
  • No costs.