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2020 (1) TMI 413 - HC - VAT and Sales TaxWhether the State Government can levy the amount more than the actual cost incurred upon the excise staff deployed in distilleries / compounding and blending plants? - whether if one excise staff is deployed in more than one distillery / compounding and blending plant, can the State Government recover the entire expenses incurred upon such staff, separately from all the distilleries / compounding and blending plants, in which such staff is deployed? HELD THAT:- The only plausible answers to these questions can be, that the State Government can only realise from the distilleries / compounding and blending plants, the actual expenses incurred on the salary, allowances etc., of the excise staff deployed in such distilleries / compounding and blending plants, and in case one excise staff is deployed in more than one distillery / compounding and blending plant, the actual cost can be realised proportionately from each of them. In no case the State Government can be allowed to levy the amount more than the actual cost incurred upon the excise staff deployed in distilleries / compounding and blending plants, and further, in case one excise staff is deployed in more than one distillery / compounding and blending plants, to recover the entire expenses incurred upon such staff, separately from all the distilleries / compounding and blending plants, as allowing such practice shall amount to undue enrichment to the State Government in garb of the Rules 9 and 36A of the aforesaid Rules, which these rules do not permit. A plain reading of both these rules clearly show, that they only permit the actual cost to be realised. Thus, no extra amount can be levied from the companies, than the actual cost incurred by the State Government on deployment of the excise staff. The other point to be kept into consideration is that the cost leviable under Rule 9 shall apply to only those distilleries, which are licensed solely and wholly for the purpose of manufacturing either denatured spirit or any other commercial spirit, unfit for human consumption, but it would not include those distilleries which are licensed for manufacturing along with spirits unfit for human consumption, also potable liquor - Similarly the fees leviable under Rule 36-A of the aforesaid Rules shall apply only to the compounding and blending plants of the foreign liquor. Matter remanded back to the Respondent Excise Commissioner, for re-determining the fees / costs leviable from the petitioners Companies, keeping in view of the aforesaid guidelines - appeal allowed by way of remand.
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