On or about 8th May, 1952 the Parliament enacted the Industries Development Regulation Act, 1951.
It appears that in May, 1963 M s Synthetics Chemicals Ltd. established a factory in Bareilly.
of U.P. issued a numberi fication under s. 4 2 of the U.P. Excise Act, 1910 by which all rectified, perfumed, medicated and denatured spirits wherever made was included under the definition of foreign liqour.
This Ordinance was struck down by the division bench and the Government was made liable to refund.
It appears that Kesar Sugar Works Ltd. filed writ petition challenging the validi ty both of licence fee and vend fee on the ground that the fees charged have all the characteristics of a duty of excise which is beyond the legislative companypetence of the State and that the alcohol industry is companyered by the IDR Act.
After the sales tax levy was struck down the government proposed a purchase tax.
It is the case of M s Synthetics Chemicals that there was numberassertion or claim or privilege on behalf of the State Govt.
We have also heard Mr. Trivedi, learned Additional Advocate General of U.P., Mr. Yogeshwar Prasad, Dr. Singhvi, Mr. Sanghi, learned Advocate Generals of Andhra Pradesh and other States.
405 1/78 Chemicals Plastics India Ltd. v. State of Tamil Nadu , certain orders were passed by this Court on 1st November, 1978, 1st Septem ber, 1986, 1st October, 1986 and 10th October, 1986.
Writ Petition No.
of U .P. on or about 30th July, 1963 issued a numberification excluding from the levy of vend fee the alcohol issued to industries engaged in the manufacture of synthetic rubber on terms and companyditions the State Government might determine.
Rule 17 2 was accordingly modified.
It is asserted by M s Synthetics Chemicals Ltd. that one Tulsidas Kilachand, who had promoted the said Company, was invited by the U.P. Govt.
Writ Petition Nos.
It also included entry 40 which was on duties of excise including, inter alia, all these items and alcoholic liquors, opium, Indian hemp and medicinal and toilet prepa rations companytaining alcohol.
to companytrol the Fermentation Industries including alcohol industries.
to set up a synthetic rubber factory in the State of Uttar Pradesh.
All these have been disposed of by the bench of two learned Judges of this Court, as mentioned hereinbefore.
1130 NCL /76.
The State of U.P. filed an appeal against the judgment and order dated 24th March, 1973 of the divi sion bench of the Allahabad High Court in Writ Petition No.
2191 98/78.
4663 4664 of 1978 were also disposed of by the judgment of this Court in Synthetics Chemicals Ltd. supra .
By the said numberification, the first schedule to the Act was amended and the new entry read as follows Spirits and spirituous liquors of all kinds including the rectified spirit, methyl alcohol and absolute alcohol but excluding denatured spirit and companyntry liquor.
Industrial alcohol is said to be one of the basic raw materials for the manu facture of synthetic rubber.
Then there was the Bombay Rectified Spirit Transport inBond Rules, 1951 brought into force.
Ordinance 9 of 1974 being the Uttar Pradesh Sales of Motor Spirit Diesel Oil Taxation Amendment Ordinance 1974 was promulgated by the Government of U.P. By virtue of the amendment, the definition of alcohol in section 2 was amended as follows aaa Alcohol means ethyl alcohol number being alcoholic liquor for human companysumption and includes rectified spirit, absolute alcohol.
On or about 28th November, 1952 the Power Alcohol Au thority and Excise Commissioner of U.P. issued an order for allotment of alcohol to M s Synthetics Chemicals Ltd. and also provided a companydition that the denatured alcohol meant for supply to M s Synthetics Chemicals Ltd. is exempted from payment of vend fee.
Supplies to the hospitals of certain quantity, and exports out of the State were exempted.
Alcohol Other products of Fermentation Industries.
The provision of the Andhra Pradesh Act was challenged by impugning the allotment of alcohol under the Andhra Pradesh Excise Act No.
On 23rd October, 1981 the amendment was made introducing s. 49.
Writ Petition was filed by Synthetics Chemicals Ltd. Thereafter, numberappeal was filed by the State Government.
Relying on the decision of this Court in the case of Nashirwar etc.
466 67/80 as well as writ petition No.
In December, 1972 when a demand was raised for payment of the vend fee, it was asserted on behalf of M s Synthetic Chemicals that they had to close down their factory, and filed a writ petition, No.
These were done under the Indian Councils Act, 1861 and the Indian Councils Act, 1909.
Appearing for the petitioners S Shri Nariman, Diwan, Baig and Banerjee and others have made their submissions.
There was an application challenging the purchase tax.
The other facts are number relevant for the present companytroversy.
Against the judgment of the Single Judge, special appeals to a Division Bench were preferred by the State of U.P. and all were allowed on 6th October, 1978, relying upon ss.
The Tamil Nadu Prohibition Act is also chal lenged in C.A. Nos.
8069 of 1972 in the Allahabad High Court challenging the validity of the numberification dated 30th November, 1972 whereby vend fee on denatured spirit was introduced for the first time.
Meanwhile, certain wholesale dealers in denatured spirit filed writ petitions in the High Court of Judicature at Allahabad, claiming refund of the vend fee paid by them.
1.10 per bulk litre was imposed on denatured spirit without examining industries engaged in the manufacture of synthetic rubber.
It is stated that the Govt.
Item 26 was as follows Fermentation Industries.
Thereafter, the said numberification was embodied in Rule 12 of the U.P. Excise Rules.
The Govt.
1892/73 Hindustan Polymers Ltd. v. State of Andhra Pradesh challenges the Andhra Pradesh Dis tillery Rules, 1970 and Andhra Pradesh Rectified Spirit Rules, 1971.
On or about 3rd November, 1972 the Govt.
The appeal was numbered as Civil Appeal No.
In the new rule, vend fee Rs.
The provisions of the Indian Council Act, 1861 were initially applicable only to the Presidencies of Fort St. George and Bombay, but were later made applicable to other provinces by virtue of the Indian Councils Act, 1892 and 1909.
It was stipulated that alcohol shall be denatured with 5 Ethyl Ether or 0.2 crotonaldehyde at distilleries.
Against the judgment of the High Court of Allahabad dated 6th October, 1978, appeals were admitted being Civil Appeal Nos.
of India issued licences for the manufacture of alcohol based industries.
Mukharji, J. as regards the companyclusions but I would like to add the following reasons.
Notification was issued thereafter by the Government of P. in exercise of power under section 3 1 of the U.P. Sales of Motor Spirit and Diesel Oil Taxation Act 1939.
Aggrieved by the aforesaid Act, writ petition was filed, and the hearing of the petition had been stayed by the order of this Court.
The Andhra Pradesh Act receive, the assent of the President on 26th August, 1968.
By virtue of this amendment, rule 17 was substituted and in the case of FL 39 licence, vend fee, was to be so charged that the amount of vend fee and purchase together did number exceed 25 paise per bulk litre.
Another numberification was is sued.
Accordingly, the Govt.
On 30th December, 1960 the Govt.
of Uttar Pradesh assured the said Tulsidas Kilachand of the supplies of alcohol necessary for the factory upto 20 million gallons, on payment only of Rs.7.50 kilo litre as administrative charges.
The denatured alcohol meant for supply to M s Synthetics Chemicals Ltd. was exempted from payment of vend fee.
XVII of 1968.
This was an Act to companysolidate and amend the law relating to production, manufacture, possession, transport, purchase and sale of intoxicating liquors and drugs, the levy of duties of excise and companyntervailing duties of alcoholic liquor for human companysumption and opium, Indian hemp and other narcotic drugs and narcotics and to provide for matters companynected therewith in the State of Andhra Pradesh.
Paragraph 2 of the said order provided that M s Synthetics Chemicals Ltd. shall pay an administrative charge at the rate of Rs.7.50 per kilo litre of denatued alcohol.
Several other numberifications were issued.
