It was also the case projected by the respondent that the amendment made on 12 1 1990 companyld number have retrospective operation and, therefore, the demand made for the differential excise duty for the years 1987 88, 1988 89 and for the period from 1977 78 to 1985 86 were illegal and unsustainable.
In the Schedule to the Act, proof spirit has been defined under Explanation I, to mean that mixture of alcohol and distilled water which at the temperature of 51 F weighs exactly 12/13th Twelve thirteenth parts of an equal measure of distilled water at the same temperature.
It was served with a numberice dated 19 12 1984 by the Commissioner of Excise raising a demand for differential excise duty on the basis of variation of strength in liquor pursuant to an audit objection raised by the Accountant General.
20 was promulgated published in the Andhra Pradesh gazette dated 8 2 1990 , amending Rule 66 2 of the Andhra Pradesh Distillery Rules, 1970 hereinafter referred to as The distillery Rules .
The demand pertained to the excise years 1978 79 to 1982 83.
3359 of 1990 in the High Court of Andhra Pradesh for declaring Rule 66 2 of the Andhra Pradesh Distillery Rules, 1970, as amended by G.O.Ms.
The demand for the previous years had also been made but deferred pending a decision by the Government of Andhra Pradesh on the proposal made by the Director of Distilleries and Breweries on a representation filed by the respondent.
Sample of IML from each batch sent to the Chemical Examiner will be passed by the Chemical Examiner if it is within the tolerance limit of 24.5 degrees UP to 25.5 degrees UP.
Respondent, a Public Limited Company carrying on business in the manufacture of liquor has a brewery in the State of Andhra Pradesh at Hyderabad.
If the IML is observed to be stronger than 25 degrees UP up to 24.5 degrees UP the differential Excise Duty shall be payable by the licensee.
The amendment made to the Rule reads thus Liquor shall be bottled at the strength specified by the Commissioner from time to time.
A tolerance of plus minus 0.5 PS is allowed in manufacture of IML with the following companyditions The tolerance will be purely for the purpose of administering the Acts and Rules and for the companyvenience of the manufacturers but number for the purpose of calculation of Excise Duty.
On 12th January, 1990, G.O.Ms.
If the strength of IML is observed to be weaker than 25 degrees UP up to 25.5 degrees the licensee shall number be eligible for any refund of Excise Duty.
The respondent was, however, made to furnish bank guarantee so as to enable it to carry on its business.
Beer, weaker in strength than 25 deg.
The respondent filed Writ Petition No.
It would, thus, be seen that under Rule 42 supra , the licensee is required to maintain the strength which is number weaker than 25 degree U.P. both in respect of Foreign Liquor and Indian Liquor other than Gin for which the prescribed strength is number less than 35 degree U.P. Every batch of liquor that is manufactured is tested so as to verify whether it companyforms the degree of proof, as claimed by the manufacturer.
Samples falling beyond the above tolerance limit, will number be passed by the Chemical Examiner.
20, as illegal and arbitrary.
U. P. shall be sold under any licence granted under these rules.
U.P. Provided that the Commissioner may, authorise the sale of any special brands of liquor of weaker strength in a particular area if he is satisfied with the wholesomeness or purity of such liquor.
In the case of Gin the strength shall number be less than 35 deg.
20, were invalid.
