Dhampur Sugar Mills Ltd. Thru. ... vs State Of U.P. Thru. Prin. Secy. ...
2022 Latest Caselaw 7907 ALL

HIGH COURT OF JUDICATURE AT ALLAHABAD, LUCKNOW BENCH
 
 

?Court No. - 17
 

 
Case :- WRIT - C No. - 9246 of 2016
 

 
Petitioner :- Dhampur Sugar Mills Ltd. Thru. General Manager Raakesh Kumar
 
Respondent :- State Of U.P. Thru. Prin. Secy. Excise Deptt. And Ors.
 
Counsel for Petitioner :- Pushpila Bisht
 
Counsel for Respondent :- C.S.C,Pradeep Kumar Singh
 

 
Hon'ble Pankaj Bhatia,J.

The present petition has been filed challenging the order dated 01.09.2015, whereby an order has been passed imposing excise duty on wastage of rectified spirit (Extra Neutral Alcohol).

The said question has engaged the attention of this Court in the case of Upper Ganges Sugar and Industries Ltd. Vs. State of U.P. and others, 2005(3) AWC 2545, which in turn has placed reliance on the judgment of the Supreme Court mainly in the case of Synthetics and Chemicals Ltd. and Ors. v. State of U.P. and Ors; (1990) 1 SCC 109.

It is argued by learned counsel for the respondents that the judgment referred by the Supreme Court in the case of Synthetics and Chemicals Ltd. (supra) has been referred to a Larger Bench in the judgment in the case of State of U.P. and Ors. v. M/S. Lalta Prasad Vaish, whereby the Supreme Court vide order dated 08.12.2010 passed in Civil Appeal No. 151 of 2007 has referred the matter to a Bench of Nine Judges', however, the admitted position is that there is no stay order and no hearing before Nine Judges' Bench has started.

In view thereof, the judgment laying down the law in the case of Synthetics and Chemicals Ltd. (supra) and as followed by this Court in the case of Upper Ganges Sugar and Industries Ltd. (supra) still holds the field. The said view stands reiterated in the case of State of Orissa and others Vs. Utakal Distilleries Limited, (2022) 5 SCC 326.

In view thereof, the order cannot be sustained and the impugned order dated 01.09.2015 (Annexure - 1) is quashed. The writ petition is allowed in terms of the said orders.

In the present case, an additional prayer for refund of Rs.43,14,828.57/- is sought to be refunded alongwith interest thereon.

In view of the fact that the writ petition has been allowed and it has been held that the levy was without any authority of law, the deduction of the amount of Rs.43,14,828.57/- from the petitioner is consequently also arbitrary and as such it is directed that the same shall be refunded to the petitioner alongwith interest at the rate of 6% per annum from the date of deduction till the payment/realization. The said amount shall be refunded to the petitioner within six weeks from the date of filing of an application.

Order Date :- 25.7.2022

nishant