Rule 82 of the Rules enjoins the distillery officer upon tender of cash payment of excise duty by the applicant to fill up the challan for presentation with the cash at a treasury or sub treasury of the district in which the distillery is situate, and the applicant for distillery pass to present the treasury receipt in token of his having made payment of the duty where after the distillery officer has to affix the said receipt to the companynterfoil of form D Rule 83 of the Rules casts responsibility upon an applicant for a distillery pass to, make a companyrect calcula tion and full payment of the excise duty upon the liquor desired to be removed.
Accordingly, acting under the provisions of section 14 1 of the Act, the Commercial Tax Officer issued numberices in February, 1975 to the appellants in the afore said first two sets of appeals to show cause why the assess ments be number reopened.
The said bill did number include the excise duty paid by the buyer.
Accordingly every buyer of the Indian liquor from either of the appellants distilleries during the years in ques tion obtained the distillery pass for release of the liquor after making payment of the excise duty and presented the same at the companycerned distillery whereupon bill of sale or invoice was prepared by the distillery showing the price of the liquor.
Aggrieved by the said action of the Commercial Tax Officer, the appellants filed writ petitions Nos.
Appeals by Special Leave from the Judgment and Order dated 28 11 1975 of the Andhra Pradesh High Court in Writ Petitions Nos.
Appeals by Special Leave from the Judgment and Order dated 28 11 1975 of the Andhra Pradesh High Court in Writ Petitions Nos.
Appeal by Special Leave from the Judgment and Order dated 28 11 1975 of the Andhra Pradesh High Court in Writ Petition No.
it appears that after the companypletion of the assessments of the sales tax under the Act for the years in question, the Commercial Tax Officer felt that there had been a failure to include the excise duty paid on the aforesaid liquors vended by the appellants in their taxable turnover.
The appellants paid the sales tax in full as per final assessments made by the sales tax authorities under the Act.
seeking issue of an appropriate writ, order or direction declaring that the appellant was number liable to pay sales tax on excise duty paid by the purchasers in their own names and restraining the Deputy Commissioner, Commercial Taxes, Hyderabad, respondent in the appeal from taking further proceedings in pursuance Of the said numberice.
1195 to 1198 of 1975 and 3931, 3944 and 4929 of 1975 in the High Court of Andhra Pradesh challenging the said numberices which, as already stated, were dismissed by the High Court.
to the appellant calling upon it to show cause why the order passed by the Assistant Commissioner, Commercial Taxes on March 26, 1973 should number be set aside and the original assessment order of the Commercial Tax Officer dated August 16, 1972 restored.
On appeal, the Assistant Commissioner by its order dated March 26, 1973 deleted from the turnover of the appel lant the item pertaining to the excise duty paid directly by the purchasers holding that the excise duty so paid by the purchasers did number, in the circumstances, form part of the turnover of the appellant.
Rule 579 of the Rules authorises the distillery officer on payment of excise duty to grant a distillery pass for remov al of the liquor fit for human companysumption to the persons specified in the said rule including a person holding a licence for sale of liquor by wholesale or retail.
For the assessment year 1971 72, the Commercial Tax Officer, Hydera bad III by its order dated August 16, 1972 included the amount representing the companyntervailing duty paid by the purchasers in respect of the Indian liquors in bond which was number included in the bills of sale issued by the appel lant.
331 of 1973 and 5 of 1974 upheld the assessment made under similar circumstances by the Commer cial Tax Officer, Vijayawada, on the turnover of M s Shaw Wallace Co. Thereupon the Deputy Commissioner, Commer cial Taxes, Hyderabad by virtue of the power vested in him under section 20 of the Act issued the impugned numberice dated October 9, 1974.
Under Rule 81 of the Rules, every application for a distillery pass for removal of liquor has to be addressed in writing to the distillery officer and has to be accompanied by a challan in original for payment of excise duty therefor and a general or special permit for the purpose of removal of the liquor.
Sometime thereafter, the Sales Tax Appellate Tribunal by its order dated August 5, 1974 passed in T.A. Nos.
6790 of 1974 before the High Court of Andhra Pradesh.
248 251 of 1976.
The appellants books of accounts also did number companytain any reference regarding the excise duty paid by the purchasers in the manner stated above.
The appellant was also required to file objections and adduce evidence in support thereof within 7 days from the date of receipt of the impugned numberice, Aggrieved by the numberice, the appellant flied a petition being petition No.
Rule 84 of the Rules requires, the distillery officer to issue the liquor under a pass in form D 6 sending a duplicate thereof to the Excise Superintend ent of the district of destination on being satisfied that the applicant is entitled under the Rules to remove the liquor and has made payment of the requisite excise duty.
1195 to 1198 of 1975,3931, 3944 and 4929 of 1975 and 6790 of 1974 filed by the.
CIVIL APPELLATE JURISDICTION Civil Appeal Nos.
248 to 251 of 1976 and 934 to 936 of 1976 carry on the business of manu facture of Indian liquors in their distilleries estab lished in Andhra Pradesh under licences issued to them by the Commissioner of Excise under the Andhra Pradesh Excise Act, 1968 Act 17 of 1968 and the rules made thereunder and sell their finished products to the wholesale dealers who in turn sell them to retail dealers.
Rule 77 of the Rules prohibits issue of any liquor until its quantity and strength have been duly verified by the distillery officer.
934 936/76 .
CIVIL APPEALS Nos.
CIVIL APPEALS No.
934 936 of 1976.
934 936/76 .
Niren De, Attorney General for India, P.P. Rao, D.V. Sastry and T.V.S.N. Chari for the Respondents in CAs.
Subba Rao for the Appellant CAs.
693/76 .
3931, 3944 and 4029/75 .
Babul Reddy and K.J. John for the Appellant CA.
appel lants to challenge certain orders of the sales tax authori ties made in respect of re determination of their turnover for certain years under the Andhra Pradesh General Sales Tax Act, 1957 hereinafter referred to as the Act shah be disposed of by this judgment, as they raise a companymon question as to whether the excise duty deposited directly in a State treas ury or a sub treasury by the purchasers of the Indian made foreign liquor called Indian liquor before removing the said liquor from a distillery and the companyntervailing duty remitted directly to a State Treasury or a sub treasury by the purchasers of the aforesaid specie of liquor before removing it from a bonded warehouse can properly be said to form part of the turnover of .he manufacturer and of the owner of the bonded warehouse respectively and as such liable to sales tax under the Act.
1195 1198/75 .
693 of 1976.
The Judgment of the Court was delivered by JASWANT SINGH, J. This batch of appeals by special leave which are directed against three separate judgments of the High Court of Andhra Pradesh at Hyderabad dismissing three sets of writ petitions Nos.
6790/74 .
248 251/76 and CAs.
Under Rule 76 of the Andhra Pradesh Distillery Rules, 1970 removal of any liquor manufactured or stored without prepayment of the excise duty specified in rule 6 is forbidden.
The circumstances which have given rise to these appeals lie in a short companypass and may be briefly stated The appel lants in the first two sets of Appeals Nos.
V.S.N. Chari for the Respondent In CA No.
Soli Sorabji and K.J. John for the Appellant CAs 248 251/76 .
693/76 .
