The manufacturer companyld number, by reason of Rule 22, seek to recover the excise duty from the party so removing the IMFL.
These amendments were given retrospective effect from 23rd May, 1981.
THE 9TH DAY OF SEPTEMBER, 1997 Present Honble Mr. Justice S.P Bharucha Honble Mr. Justice K.T. Thomas Honble Mr. Justice V.N. Khare L. Sanghi, Sr.
The appellants were number, therefore, liable to pay sales tax on excise duty which was neither part of the sale price number companysideration for the Sale.
TASMAC paid the amount thereof directly.
Hence these appeals.
It was companytended on behalf of the appellants in their writ petitions before the High Court that the liability to pay excise duty upon the basis of the aforesaid provisions lay number upon them but upon the Tamil Nadu State Marketing Corporation TASMAC .
The imposition of the excise duty by reason of Rule 22 was squarely on the party who removed the IMFL from its manufacturory, namely, TASMAC.
The appellants neither companylected the excise duty from the wholesaler number had they the statutory or companytractual authority to realise the same from it.
A.T.M. Sampath, Adv.
The element of the excise duty did number enter into the turnover of the manufacturer and, accordingly, numbersales tax was payable on the element of excise duty.
TASMAC had submit an application for its requirement of IMFL and thereupon the excise duty thereon was assessed.
5106/97, 5122/97, 5123/97, 5124/97, 5125/97, 5126/97, 5127 28/97, 5129/97, 5130/97, 5131 5133/97 J U D G M E N T P. BHARUCHA, J. These are appeals against the judgments and orders of Division Benches of the High Court at Madras in tax revision cases that involve the same issue, name, whether the excise duty on potable liquor manufactured by the appellants, paid by the purchasers thereof, is includible in the taxable turnover of the appellants for the purpose of levy of tax under the Tamil Nadu General Sales Tax Act.
with him for the appellants.
payment of excise duty and vend fee An excise duty, at such rate as the state Government may prescribe from time to time, shall be paid by the person who removes the goods from a manufactory, on the stock of Indian made Foreign Spirits so removed from the manufactory.
By reason of Section 17 C of the Act, introduced by an amendment in 1983 , the Tamil Nadu state Marketing Corporation Limited, a companyporation wholly owned and companytrolled by the Government of State of Tamil Nadu, had at the relevant time the exclusive privilege of supplying by wholesale IMFL for the whole of that State.
The appellants manufacture Indian Made Foreign Liquor IMFL on the strength of licences issued to them under the provisions of the Tamil Nadu Indian Made Foreign spirits Manufacture Rules, 1981.
manufacture, supply and sale of the IMFL is governed the Tamil Nadu prohibition Act, 1937 number referred to as the Act , the Tamil Nadu Indian Made Foreign spirits Indian Made Foreign Spirit Manufacture Rules, 1981 number referred to as the wholesale Rules and the Manufacture Rules respectively .
Rule 22 of the manufacture Rules, as amended on 4th October, 1982, reads thus 22.
Rule 15 1 of the Wholesale Rules, amended at the same time, reads thus Payment of excise duty and vend fee.
A vend fee of rupees two per bulk liter shall be paid by the licensee on all stocks of Indian made Foreign Spirits issued from the manufactory.
1 The licensee shall pay the excise duty on the stock of Indian made Foreign Spirits removed by him from a manufactory in the State as required under sub rule 1 of rule 22 of the Tamil nadu Indian made Foreign Spirits manufacture Rules, 1981 or the companyntervailing duty on the stock of companyntervailing duty on the stock of Indian made Foreign Spirits imported from a manufactory outside the State or the excise duty or companyntervailing duty as the case may be , on the stock of Indian made Foreign spirits removed by him from a bonded warehouse licensed under the Tamil Nadu Indian made Foreign Spires Storage in Bond Rules, 1981.
