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1975 (4) TMI 130 - SC - Central ExciseWhether the respondent is liable to pay enhanced fee brought about by amendment of the rules on April 25, 1964? Held that:- The contention that the enhanced levy of licence fee cannot operate as from April 1, 1964 is to be negatived. A fair reading of the rule giving full effect to the words used in Rule XXVI of the Excise rules and the explanation added to Rule IV (of the Foreign Liquor Rules already extracted) leave us in no doubt that the balance of stocks envisioned by the rules and subjected to enhancement or reduction of duty is such surplus stock as is held immediately before the expiry of the previous license. So construed, in this case the quantity held over on March 31, 1964 becomes liable to enhancement of license fee on April 1, 1964 and that is precisely what the Stats has claimed. For, otherwise, some persons who by accident have huge stocks left over will not have to pay the enhanced rate of licence fee while others with 'virgin' licences for that year and begin with no stock-on-hand have to pay at a higher rate. Again, if only the respondent had surrendered his surplus stocks on 31-3-1964, as ordinarily he would have had to, had he not been permitted to retain that quantity in view of his getting a fresh licence for the same premises, he would have had to pay the enhanced rate for such left-over stock. Thus(the respondent) had to pay the higher fee on the balance of stock as on April 1, 1964. The High Court erred in its interpretation of the rules as applicable to the present situation. Appeal allowed
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