STATE OF U.P. & ORS. versus M/S MOHAN MEAKIN BREWERIES LTD. & ANR.

STATE OF U.P. & ORS. versus M/S MOHAN MEAKIN BREWERIES LTD. & ANR.

The process of brewing beer results in exigibility to excise duty when fermentation completes; the 9% brewery and 1% bottling allowance division is valid under the Act and Rules; excess wastage will be charged duty only on the quantity exceeding the allowed percentages measured at appropriate stages.

Parties
Appellant: State of U.P. & Ors.; Respondent: M/s Mohan Meakin Breweries Ltd. & Anr.
Jurisdiction
India
Judgment Date
23 September 2011
Procedural Posture
Civil Appeal / Supreme Court Final Decision
Outcome
Appeals disposed of
Legal Topics
Imposition of Excise Duty on Beer, Manufacturing and Bottling Wastage Allowances, Legislative Competence Under Constitution
Excise Law Constitutional Law Imposition of Excise Duty on Beer Manufacturing and Bottling Wastage Allowances Legislative Competence Under Constitution

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Parties

State of U.P. & Ors.

Appellant

M/s Mohan Meakin Breweries Ltd. & Anr.

Respondent

Procedural Posture

Civil Appeal / Supreme Court Final Decision

Legal Issues

  1. 1 At what stage is beer manufactured exigible to duty under the U.P. Excise Act, 1910?
  2. 2 Whether the procedure for ascertaining excess manufacturing wastage is proper?
  3. 3 Is the division of 10% allowance for wastage between brewery (9%) and bottling/storage (1%) permissible under the Act and Rules?

Ratio Decidendi

The process of brewing beer results in exigibility to excise duty when fermentation completes; the 9% brewery and 1% bottling allowance division is valid under the Act and Rules; excess wastage will be charged duty only on the quantity exceeding the allowed percentages measured at appropriate stages.

Court Disposition

Appeals disposed of

Orders

  • CA Nos. 4708-4709/2002 allowed; High Court order set aside and writ petitions dismissed.
  • CA Nos. 4710, 4711, 4712 & 4713/2002 dismissed, High Court decisions affirmed.