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2002 (2) TMI 1286 - SUPREME COURTLevy of excise duty on the beer brewed by the respondent Held that:- The excise authorities can levy excise duty only on the beer after it has been manufactured: the levy has to be on the quantity manufactured. How this quantity is to be arrived at has to be determined according to Section 32 read with Rule 35. We may, however, note that before the Excise Commissioner no dispute appears to have been raised with regard to the figures and the contention was that the percentage of wastage should have been more than 7 or 10 per cent. Mr. Divan, however, submits that this contention which was upheld by the High Court was raised subsequently. While in the body of the writ petition, it is stated that Rule 35 is violative of the Act, no specific prayer was made in the writ petition, but in the manner in which we have interpreted Rule 35 it appears to us that it is only an enabling provision which will help the excise authorities in calculating what would be the quantity of beer manufactured and fit for human consumption on which excise duty could be imposed. The said Rule is neither invalid nor does it require to be read down. Allow this appeal and set aside the decision of the High Court, but remand the case to the Financial Commissioner for a fresh decision in accordance with law and in the light of the observations made in this judgment.
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