TMI Blog1998 (1) TMI 531X X X X Extracts X X X X X X X X Extracts X X X X ..... Liquor and Foreign Liquor Rules, 1979 (for short 'the Rules') prescribing the time limit for production of excise verification reports is only directory and not mandatory and for a consequential direction to the respondents not to invoke the bank guarantee furnished by them as contemplated under Rule 12(1) of the Rules. 2. The Rules made by the Government of Andhra Pradesh in exercise of powers conferred under Section 72 r/w Sections 9, 11, 12, 13, 14, 15 and 28 of the A.P. Excise Act, 1968 and published in A.P. Gazette (BO) RS to dt. II dated 14-9-70, inter alia, provide for export of Indian Liquor by the manufacturers of Liquor or Brewers within this State to the importers in other States including the Military Can ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he authority who issued the export permit within 21 days after expiry of the validity of the export permit, failing which the excise duty paid shall accrue to the Government or the bank guarantee furnished shall be invoked and encashed amount adjusted towards Government revenue and no new permit shall be issued until verification reports for the previous consignments are furnished. Rule 12-B provides that in case the officer incharge of the importing Slate makes a report of short receipt in the consignment in his verification report, the authorities issuing export permits shall collect excise duty at the prevailing rate on short receipt of consignment and if the excise duty is not paid within 3 days the same may be collected by invoking th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shing bank guarantee for an equal sum is to ensure that the quantity of liquor permitted to be exported is actually exported and received in the importing States and the excise duty is paid thereon in the importing States. 4. In the light of the above, let us see whether the provision in Rule 12-A prescribing a time limit of 21 days for furnishing verification reports from the date of expiry of the validity of the export permit is directory or mandatory. Sri P. Sitarama Raju, learned Counsel for the petitioners places strong reliance on judgment dated 23-2-1989 of a Division Bench of Kerala High Court comprising the Hon'ble the Chief Justice V.S. Malimath and Justice V. Bhaskaran Nambiar in W.A. No. 891/88, to drive home ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... asons can be looked into and an assessment was to follow without having the necessary particulars, the assessment and the demand are likely to be labelled as arbitrary and unjust. A construction which leads to such absurd results has to be avoided...... while there can be no intendment, no equity in a taxing statute, that principle only applies to the charging sections and not to the procedural provisions leading to the recovery of tax. The procedural formalities provided in the notification are merely directory intended to effectuate the object of the Act, to collect the duty..... therefore.... the time fixed for production of verification certificate was only directory.'' Dealing with these submissions, Justice V ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oing violence to the language used, achieves the object sought to be realised. A distinction for the purpose of interpretation, has to be made between the charging provisions in a taxing statute and the provisions relating to the machinery for quantification and collection of tax. The charging section has to be construed with reference only to the language employed in the statute, for, there is no room for intendment; there is no equity about a tax; there is no presumption as to a tax and ''nothing is to be read in and nothing is to be implied . Different considerations however arise when the machinery provisions in a taxing measure have to be construed, when the Court is not bound to adopt a strict interpretati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ge Corporation Depots located at Cannonore, Calicut, Palghat, Trichur, Ernakulam, Quilon and Attingal. True, they could not obtain the excise verification certificates within the time specified under Rule 12-A and submit the same to the Commissioner of Excise, Andhra Pradesh, Hyderabad. But, they have satisfactorily explained the delay. Infact, the respondents without insisting for production of verification reports, issued fresh export permits to the petitioners after obtaining an undertaking from them to submit the same within the time extended. It is not the case of the respondents that the petitioners misused the export permits and the quantity of liquor permitted to be exported did not reach the destinations and the excise duty was not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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