High Court of KeralaDivision BenchReview Petitions are rejected, in limine.
State of Kerala v United Spirits Ltd
Case / Petition Number:RP.No.10 of 2020 in WA.1917/2012 (Lead)
Case Details & Bench
- Court
- High Court of Kerala
- Hon'ble Judges
- K. Vinod Chandran
- Ashok Menon
- Judgment Date
- 2020-03-06
- Court Decision / Holding
- The Review Petitions are rejected, in limine.
- Final Disposition
- Review Petitions are rejected, in limine.
Parties to the Case
Appellants / Petitioners
- State of Kerala represented by Secretary to Government, Taxes Department, Secretariat, Thiruvananthapuram - 695001
- The Commissioner of Excise, Commissionerate of Excise, Thiruvananthapuram - 695001
- The Circle Inspector of Excise, M/S United Spirits Ltd., Varanadu, Cherthala - 688524
Respondents
- United Spirits Ltd., Varanadu, Cherthala - 688524
- Empee Distilleries Ltd., Kanjikode, Palakkad - 678621
- Seven Seas Distillery Ltd., Mannuthy P.O., Thrissur - 680651
- SDF Industries Ltd., Chandranagar, Palakkad - 680597
- Kerala Alcoholic Products Ltd., Palakkad - 678533
- United Distilleries, Kozhikode - 673303
- United Distilleries, Vengalipara, Kozhikode - 673303
Legal Representation & Advocates
Counsels for Petitioners
- • Sri C.K. Govindan (Senior Government Pleader)
Counsels for Respondents
- • Sri Raju K. Mathews
- • Sri Millu Dandapani
- • Sri M. Krishnakumar
Case Synopsis & Summary
This batch of review petitions, filed by the State of Kerala, attacks a common judgment delivered in a batch of writ appeals (WA Nos. 1917/2012, 1864/2012, 1910/2012, 1863/2012, 2100/2012, 1946/2012, 1938/2012, 1552/2016, 1940/2012, 1919/2012, 1933/2012, 1862/2012, 1764/2012, 1924/2012) by the Kerala High Court on 8 February 2019. The core dispute concerns levy/fee on import of special spirits used in manufacturing Indian Made Foreign Liquor (IMFL) under the Abkari Act and related regulations, including SRO 330/1996. The Government argues that the levy is a regulatory measure permissible under the Abkari Act or under the Industries (Development and Regulation) Act amendments, and cites State of Kerala v. Chemplast Sanmar Ltd (2019) 1 KLT 123 and Synthetics and Chemicals Ltd. v. State of Uttar Pradesh (1990) 1 SCC 109 to support regulatory authority. The respondents, manufacturers/importers such as United Spirits Ltd., Empee Distilleries, Seven Seas Distilleries, SDF Industries, Kerala Alcoholic Products Ltd., United Distilleries, and related entities, contend that the levy is not backed by a regulatory framework; the proviso to Section 6 of the Abkari Act excludes import fees on rectified spirit/ENA/absolute alcohol, and the amendments to the IDR Act (2015–2016) do not justify the levy. The court ultimately concludes no regulatory basis exists, and the review petitions are dismissed in limine.
Provisions of Law Cited
Abkari Act - Sections 6, 7, 17, 18; proviso to Section 6 (as inserted by Act 3 of 2010, with retrospective effect from 30.03.1996)Industries (Development and Regulation) Act, 1951 (as amended by 2015 and 2016 amendments)Industries (Development and Regulation) Amendment Bill, 2015 (Bill No. 266 of 2015)Industries (Development and Regulation) Amendment Act, 2016SRO 330/1996 (levy on IMFL)State of Kerala v. Chemplast Sanmar Limited, 2019 (1) KLT 123Synthetics and Chemicals Ltd. & Ors v. State of U.P. & Ors, 1990 (1) SCC 109
Submissions & Arguments
Contentions of Appellants / Petitioners
The petitioners argued that the levy of Rs.5 per proof litre on imported special spirits used to manufacture IMFL falls within a regulatory framework permissible under the Abkari Act or through amended provisions of the Industries (Development and Regulation) Act. They relied on regulatory powers discussed in Synthetics and Chemicals Ltd. v. State of U.P. (1990) 1 SCC 109 and the interpretation in State of Kerala v. Chemplast Sanmar Ltd (2019) to contend that states may regulate non-potable alcohol to prevent diversion and misuse. They pointed to SRO 330/1996 and the 2010 proviso to Section 6 of the Abkari Act to justify import-fee applicability.
Contentions of Respondents
The respondents argued that the levy cannot be sustained as a fee since no regulatory regime or regulatory measure is demonstrated. They asserted that the levy is not imposed on potable liquor and does not relate to transit or transport under Abkari Act. They highlighted that the proviso to Section 6 excludes import fees on rectified spirit or ENA including absolute alcohol intended for liquor manufacture and that amendments to the IDR Act do not render the levy valid for imported special spirits.
Cited Precedents (2)
| Case Name | Citation | Treatment | Explanation |
|---|---|---|---|
| State of Kerala v. Chemplast Sanmar Limited | 2019 (1) KLT 123 | Positive | Cited to interpret the scope of ‘spirits’ and the regulatory framework under the Abkari Act; used to support that the levy on special spirits does not fall within the regulatory measures described. |
| Synthetics and Chemicals Ltd. & Ors v. State of U.P. & Ors | 1990) 1 SCC 109 | Positive | Cited for the proposition that the State may lay down regulations to ensure non-potable alcohol is not diverted; used to examine regulatory measures under the Abkari Act and IDR Act amendments. |
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Extracted Judgment Text
Exact text extracted from official judgment records.
## **IN THE HIGH COURT OF KERALA AT ERNAKULAM**
## **PRESENT**
**THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN**
## **&**
**THE HONOURABLE MR. JUSTICE ASHOK MENON**
**FRIDAY, THE 06TH DAY OF MARCH 2020 / 16TH PHALGUNA, 1941**
**RP.No.10 OF 2020 IN WA.1917/2012**
**AGAINST THE JUDGMENT IN WA 1917/2012 DATED 08.02.2019 OF HIGH COURT OF KERALA**
## **REVIEW PETITIONERS/ APPELLANTS:**
**1 STATE OF KERALA, REPRESENTED BY SECRETARY TO GOVERNMENT, TAXES DEPARTMENT, SECRETARIAT, THIRUVANANTHAPURAM - 695 001.**
**2 THE COMMISSIONER OF EXCISE, COMMISSIONERATE OF EXCISE, THIRUVANANTHAPURAM - 695 001.**
**3 THE CIRCLE INSPECTOR OF EXCISE, M/S. UNITED SPIRITS LTD., VARANADU, CHERTHALA, PIN - 688 524.**
**BY SR.GOVERNMENT PLEADER SRI.C.K.GOVINDAN**
## **RESPONDENT/S:**
**UNITED SPIRITS LTD., VARANADU, CHERTHALA, PIN - 688 524, REPRESENTED BY ITS GENERAL MANAGER, K. JAGADISHWARLU.**
**R1 BY ADV. SRI.RAJU K.MATHEWS**
**THIS REVIEW PETITION HAVING BEEN FINALLY HEARD ON 06.03.2020, ALONG WITH RP.1146/2019 AND CONNECTED CASES, THE COURT ON THE SAME DAY PASSED THE FOLLOWING:**
**RP.No.10 of 2020 & - 2 - connected cases**
## **IN THE HIGH COURT OF KERALA AT ERNAKULAM**
## **PRESENT**
**THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN**
## **&**
**THE HONOURABLE MR. JUSTICE ASHOK MENON**
**FRIDAY, THE 06TH DAY OF MARCH 2020 / 16TH PHALGUNA, 1941**
**RP.No.1146 OF 2019 IN WA. 1864/2012**
**AGAINST THE JUDGMENT IN WA 1864/2012 DATED 08.02.2019 OF HIGH COURT OF KERALA**
## **REVIEW PETITIONER/S:**
**1 STATE OF KERALA REPRESENTED BY SECRETARY TO GOVERNMENT, TAXES DEPARTMENT, SECRETARIAT, THIRUVANANTHAPURAM-695001. 2 THE COMMISSIONER OF EXCISE, COMMISSIONERATE OF EXCISE, THIRUVANANTHAPURAM-695001.**
**3 THE CIRCLE INSPECTOR OF EXCISE, M/S. UNITED SPIRITS, VARANADU, CHERTHALA-688524.**
## **BY SR.GOVERNMENT PLEADER SRI.C.K.GOVINDAN**
## **RESPONDENT/S:**
**UNITED SPIRITS LTD. VARANADU, CHERTHALA-688524, REPRESENTED BY ITS DEPUTY GENERAL MANAGER, K.JAGADISHWARLU.**
**R1 BY ADV. SRI.RAJU K.MATHEWS**
**THIS REVIEW PETITION HAVING BEEN FINALLY HEARD ON 06.03.2020, ALONG WITH RP.10/2020 AND CONNECTED CASES, THE COURT ON THE SAME DAY PASSED THE FOLLOWING:**
**RP.No.10 of 2020 & - 3 - connected cases**
## **IN THE HIGH COURT OF KERALA AT ERNAKULAM**
# **PRESENT**
**THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN**
**&**
**THE HONOURABLE MR. JUSTICE ASHOK MENON**
**FRIDAY, THE 06TH DAY OF MARCH 2020 / 16TH PHALGUNA, 1941**
**RP.No.1162 OF 2019 IN WA. 1910/2012**
**AGAINST THE JUDGMENT IN WA 1910/2012 DATED 08.02.2019 OF HIGH COURT OF KERALA**
## **REVIEW PETITIONER/S:**
**1 STATE OF KERALA, REPRESENTED BY SECRETARY TO GOVERNMENT, TAXES DEPARTMENT, SECRETARIAT, THIRUVANANTHAPURAM - 695 001. 2 THE COMMISSIONER OF EXCISE, COMMISSIONERATE OF EXCISE, THIRUVANANTHAPURAM 695 001. 3 THE INSPECTOR OF EXCISE, M/S. EMPEE DISTILLERIES LTD., KANJIKODE, PALAKKAD-678621.**
## **BY SR.GOVERNMENT PLEADER SRI.C.K.GOVINDAN**
## **RESPONDENT/S:**
**EMPEE DISTILLERIES LTD., NEW INDUSTRIAL DEVELOPMENT AREA, MENONPARA ROAD, KANJIKODE, PALAKKAD 678 621, REPRESENTED BY ITS MANAGER, (PERSONAL AND ADMINISTRATION) A RAJENDRAN.**
## **R1 ADV.SRI.MILLU DANDAPANI**
**THIS REVIEW PETITION HAVING BEEN FINALLY HEARD ON 06.03.2020, ALONG WITH RP.10/2020 AND CONNECTED CASES, THE COURT ON THE SAME DAY PASSED THE FOLLOWING:**
**RP.No.10 of 2020 & connected cases**
**- 4 -**
# **IN THE HIGH COURT OF KERALA AT ERNAKULAM**
# **PRESENT**
**THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN**
**&**
**THE HONOURABLE MR. JUSTICE ASHOK MENON**
**FRIDAY, THE 06TH DAY OF MARCH 2020 / 16TH PHALGUNA, 1941**
## **RP.No.1164 OF 2019 IN WA. 1863/2012**
**AGAINST THE JUDGMENT IN WA 1863/2012 DATED 08.02.2019 OF HIGH COURT OF KERALA**
## **REVIEW PETITIONER/S:**
**1 STATE OF KERALA REPRESENTED BY SECRETARY TO GOVERNMENT, TAXES DEPARTMENT, SECRETARIAT, THIRUVANANTHAPURAM-695001. 2 THE COMMISSIONER OF EXCISE, COMMISSIONERATE OF EXCISE, THIRUVANANTHAPURAM-695001. 3 THE CIRCLE INSPECTOR OF EXCISE, M/S.SEVEN SEAS DISTILLERY LTD., MANNUTHY P.O., THRISSUR-680651.**
**BY SR.GOVERNMENT PLEADER SRI.C.K.GOVINDAN**
## **RESPONDENT/S:**
**SEVEN SEAS DISTILLERY LTD., MANNUTHY P.O., THRISSUR-680651, REPRESENTED BY ITS DEPUTY GENERAL MANAGER, K.D.ANTO.**
**R1 BY ADV. SRI.RAJU K.MATHEWS**
**THIS REVIEW PETITION HAVING BEEN FINALLY HEARD ON 06.03.2020, ALONG WITH RP.10/2020 AND CONNECTED CASES, THE COURT ON THE SAME DAY PASSED THE FOLLOWING:**
**RP.No.10 of 2020 & connected cases**
**- 5 -**
## **IN THE HIGH COURT OF KERALA AT ERNAKULAM**
## **PRESENT**
**THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN**
**&**
**THE HONOURABLE MR. JUSTICE ASHOK MENON**
**FRIDAY, THE 06TH DAY OF MARCH 2020 / 16TH PHALGUNA, 1941**
## **RP.No.1172 OF 2019 IN WA. 2100/2012**
**AGAINST THE JUDGMENT IN WA 2100/2012 DATED 08.02.2019 OF HIGH COURT OF KERALA**
## **REVIEW PETITIONER/S:**
**1 THE CIRCLE INSPECTOR OF EXCISE SDF INDUSTRIES LTD, PAMPADY, THIRUVILVAMALA, THRISSUR DISTRICT. 2 THE DEPUTY COMMISSIONER OF EXCISE CENTRAL ZONE, PALARIVATTOM, KOCHI.**
**3 THE COMMISSIONER OF EXCISE GOVERNMENT OF KERALA, THIRUVANANTHAPURAM.**
**BY SR.GOVERNMENT PLEADER SRI.C.K.GOVINDAN**
## **RESPONDENT/S:**
**M/S.SDF INDUSTRIES LTD. SDF HOUSE, N.H BYE PASS ROAD, CHANDRANAGAR, PALAKKAD, REPRESENTED BY SRI. SUNNY MATHEW, SENIOR LAISON ASSISTANT- 680 597.**
**R1 BY ADV. SRI.M.KRISHNAKUMAR**
**THIS REVIEW PETITION HAVING BEEN FINALLY HEARD ON 06.03.2020, ALONG WITH RP.10/2020 AND CONNECTED CASES, THE COURT ON THE SAME DAY PASSED THE FOLLOWING:**
**RP.No.10 of 2020 & - 6 - connected cases**
## **IN THE HIGH COURT OF KERALA AT ERNAKULAM**
## **PRESENT**
**THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN**
**&**
**THE HONOURABLE MR. JUSTICE ASHOK MENON**
**FRIDAY, THE 06TH DAY OF MARCH 2020 / 16TH PHALGUNA, 1941**
**RP.No.1176 OF 2019 IN WA. 1946/2012**
**AGAINST THE JUDGMENT IN WA 1946/2012 DATED 08.02.2019 OF HIGH COURT OF KERALA**
## **REVIEW PETITIONER/S:**
**1 STATE OF KERALA, REPRESENTED BY SECRETARY TO GOVERNMENT, TAXES DEPARTMENT, SECRETARIAT, THIRUVANANTHAPURAM - 695 001. 2 THE COMMISSIONER OF EXCISE, COMMISSIONER OF EXCISE, THIRUVANANTHAPURAM - 695 001. 3 THE INSPECTOR OF EXCISE, M/S.KERALA ALCOHOLIC PRODUCTS LTD., GOPALAPURAM ROAD, MEENAKSHIPURAM P.O., PALAKKAD - 678 533.**
## **BY SR.GOVERNMENT PLEADER SRI.C.K.GOVINDAN RESPONDENT/S:**
**M/S.KERALA ALCOHOLIC PRODUCTS LTD., GOPALAPURAM ROAD, MEENAKSHIPURAM P.O., PALAKKAD - 678 533, REPRESENTED BY ITS GENERAL MANAGER, K.ARUCHAMY.**
**R1 BY ADV. SRI.RAJU K.MATHEWS**
**THIS REVIEW PETITION HAVING BEEN FINALLY HEARD ON 06.03.2020, ALONG WITH RP.10/2020 AND CONNECTED CASES, THE COURT ON THE SAME DAY PASSED THE FOLLOWING:**
**RP.No.10 of 2020 & - 7 - connected cases**
## **IN THE HIGH COURT OF KERALA AT ERNAKULAM**
## **PRESENT**
**THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN**
**&**
**THE HONOURABLE MR. JUSTICE ASHOK MENON**
**FRIDAY, THE 06TH DAY OF MARCH 2020 / 16TH PHALGUNA, 1941**
**RP.No.1180 OF 2019 IN WA. 1938/2012**
**AGAINST THE JUDGMENT IN WA 1938/2012 DATED 08.02.2019 OF HIGH COURT OF KERALA**
## **REVIEW PETITIONER/S:**
**1 STATE OF KERALA REPRESENTED BY SECRETARY TO GOVERNMENT, TAXES DEPARTMENT, SECRETARIAT, THIRUVANANTHAPURAM - 695 001. 2 THE COMMISSIONER OF EXCISE COMMISSIONERATE OF EXCISE, THIRUVANANTHAPURAM - 695 001. 3 THE INSPECTOR OF EXCISE M/S SEVEN SEAS DISTILLERY LTD., MANNUTHY P. O., THRISSUR - 680 651.**
## **BY SR.GOVERNMENT PLEADER SRI.C.K.GOVINDAN**
## **RESPONDENT/S:**
**M/S SEVEN SEAS DISTILLERY LTD MANNUTHY P. O., THRISSUR - 680 651, REPRESENTED BY ITS DEPUTY GENERAL MANAGER, K. D. ANTO.**
**R1 BY ADV. SRI.RAJU K.MATHEWS**
**THIS REVIEW PETITION HAVING BEEN FINALLY HEARD ON 06.03.2020, ALONG WITH RP.10/2020 AND CONNECTED CASES, THE COURT ON THE SAME DAY PASSED THE FOLLOWING:**
**RP.No.10 of 2020 & - 8 - connected cases**
# **IN THE HIGH COURT OF KERALA AT ERNAKULAM**
# **PRESENT**
**THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN**
**&**
**THE HONOURABLE MR. JUSTICE ASHOK MENON**
**FRIDAY, THE 06TH DAY OF MARCH 2020 / 16TH PHALGUNA, 1941**
**RP.No.1183 OF 2019 IN WA. 1552/2016**
**AGAINST THE JUDGMENT IN WA 1552/2016 DATED 08.02.2019 OF HIGH COURT OF KERALA**
## **REVIEW PETITIONER/S:**
**1 STATE OF KERALA REPRESENTED BY SECRETARY TO GOVERNMENT, TAXES DEPARTMENT, SECRETARIAT, THIRUVANANTHAPURAM - 695 001. 2 THE COMMISSIONER OF EXCISE THIRUVANANTHAPURAM - 695 001. 3 THE INSPECTOR OF EXCISE UNITED DISTILLERIES, VENGALIPARA, POST ERANHIKKAL, KOZHIKODE - 673 303.**
## **BY SR.GOVERNMENT PLEADER SRI.C.K.GOVINDAN**
## **RESPONDENT/S:**
**UNITED DISTILLERIES, VENGALIPARA, POST ERNHIKKAL, KOZHIKODE, PIN - 673 303., REPRESENTED BY ITS GENERAL MANAGER (FINANCE), SRI P. C. UNNIKRISHNAN.**
**R1 ADV.SRI.MILLU DANDAPANI**
**THIS REVIEW PETITION HAVING BEEN FINALLY HEARD ON 06.03.2020, ALONG WITH RP.10/2020 AND CONNECTED CASES, THE COURT ON THE SAME DAY PASSED THE FOLLOWING:**
**RP.No.10 of 2020 & - 9 - connected cases**
## **IN THE HIGH COURT OF KERALA AT ERNAKULAM**
## **PRESENT**
**THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN**
**&**
**THE HONOURABLE MR. JUSTICE ASHOK MENON**
**FRIDAY, THE 06TH DAY OF MARCH 2020 / 16TH PHALGUNA, 1941**
**RP.No.1194 OF 2019 IN WA. 1940/2012**
**AGAINST THE JUDGMENT IN WA 1940/2012 DATED 08.02.2019 OF HIGH COURT OF KERALA**
## **REVIEW PETITIONER/S:**
**1 STATE OF KERALA, REPRESENTED BY SECRETARY TO GOVERNMENT, TAXES DEPARTMENT, SECRETARIAT, THIRUVANANTHAPURAM-695001. 2 THE COMMISSIONER OF EXCISE, COMMISSIONERATE OF EXCISE, THIRUVANANTHAPURAM- 695001. 3 THE INSPECTOR OF EXCISE, M/S.SEVEN SEAS DISTILLERY LTD., MANNUTHY P.O., THRISSUR- 680651.**
**BY SR.GOVERNMENT PLEADER SRI.C.K.GOVINDAN**
## **RESPONDENT/S:**
**M/S.SEVEN SEAS DISTILLERY LTD., MANNUTHY P.O., THRISSUR-680651, REPRESENTED BY ITS DEPUTY GENERAL MANAGER, K.D.ANTO.**
**R1 BY ADV. SRI.RAJU K.MATHEWS**
**THIS REVIEW PETITION HAVING BEEN FINALLY HEARD ON 06.03.2020, ALONG WITH RP.10/2020 AND CONNECTED CASES, THE COURT ON THE SAME DAY PASSED THE FOLLOWING:**
**RP.No.10 of 2020 & - 10 - connected cases**
## **IN THE HIGH COURT OF KERALA AT ERNAKULAM**
## **PRESENT**
**THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN**
## **&**
**THE HONOURABLE MR. JUSTICE ASHOK MENON**
**FRIDAY, THE 06TH DAY OF MARCH 2020 / 16TH PHALGUNA, 1941**
**RP.No.14 OF 2020 IN WA. 1919/2012**
**AGAINST THE JUDGMENT IN WA 1919/2012 DATED 08.02.2019 OF HIGH COURT OF KERALA**
## **REVIEW PETITIONER/S:**
**1 STATE OF KERALA REPRESENTED BY SECRETARY TO GOVERNMENT, TAXES DEPARTMENT, SECRETARIAT, THIRUVANANTHAPURAM 695 001. 2 THE COMMISSIONER OF EXCISE, COMMISSIONERATE OF EXCISE, THIRUVANANTHAPURAM 695 001. 3 THE CIRCLE INSPECTOR OF EXCISE, M/S. UNITED SPIRITS, VARANADU, CHERTHALA, 688 524.**
## **BY SR.GOVERNMENT PLEADER SRI.C.K.GOVINDAN**
## **RESPONDENT/S:**
**M/S.UNITED SPIRITS LTD. VARANADU, CHERTHALA 688 524, REPRESENTED BY ITS GENERAL MANAGER, K. JAGADISHWARLU.**
**R1 BY ADV. SRI.RAJU K.MATHEWS**
**THIS REVIEW PETITION HAVING BEEN FINALLY HEARD ON 06.03.2020, ALONG WITH RP.10/2020 AND CONNECTED CASES, THE COURT ON THE SAME DAY PASSED THE FOLLOWING:**
**RP.No.10 of 2020 & - 11 - connected cases**
## **IN THE HIGH COURT OF KERALA AT ERNAKULAM**
# **PRESENT**
**THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN**
**&**
**THE HONOURABLE MR. JUSTICE ASHOK MENON**
**FRIDAY, THE 06TH DAY OF MARCH 2020 / 16TH PHALGUNA, 1941**
**RP.No.30 OF 2020 IN WA. 1933/2012**
**AGAINST THE JUDGMENT IN WA 1933/2012 DATED 08.02.2019 OF HIGH COURT OF KERALA**
## **REVIEW PETITIONER/S:**
**1 STATE OF KERALA, REPRESENTED BY SECRETARY TO GOVERNMENT, TAXES DEPARTMENT,SECRETARIAT , THIRUVANANTHAPURAM-695 001.**
- **2 THE COMMISSIONER OF EXCISE, COMMISSIONERATE OF EXCISE, THIRUVANANTHAPURAM-695 001.**
**3 THE CIRCLE INSPECTOR OF EXCISE, M/S.UNITED SPIRITS LTD., VARANADU, CHERTHALA-688 524.**
## **BY SR.GOVERNMENT PLEADER SRI.C.K.GOVINDAN**
## **RESPONDENT/S:**
**M/S. UNITED SPIRITS LTD., VARANADU,CHERTHALA-688 524. REPRESENTED BY ITS GENERAL MANAGER,K.JAGADISHWARLU.**
**R1 BY ADV. SRI.RAJU K.MATHEWS**
**THIS REVIEW PETITION HAVING BEEN FINALLY HEARD ON 06.03.2020, ALONG WITH RP.10/2020 AND CONNECTED CASES, THE COURT ON THE SAME DAY PASSED THE FOLLOWING:**
**RP.No.10 of 2020 & - 12 - connected cases**
## **IN THE HIGH COURT OF KERALA AT ERNAKULAM**
## **PRESENT**
**THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN**
**&**
**THE HONOURABLE MR. JUSTICE ASHOK MENON**
**FRIDAY, THE 06TH DAY OF MARCH 2020 / 16TH PHALGUNA, 1941**
**RP.No.50 OF 2020 IN WA. 1862/2012**
**AGAINST THE JUDGMENT IN WA 1862/2012 DATED 08.02.2019 OF HIGH COURT OF KERALA**
## **REVIEW PETITIONER/S:**
**1 STATE OF KERALA REPRESENTED BY SECRETARY TO GOVERNMENT, TAXES DEPARTMENT, SECRETARIAT, THIRUVANANTHAPURAM- 695001.**
**2 THE COMMISSIONER OF EXCISE, COMMISSIONERATE OF EXCISE, THIRUVANANTHAPURAM- 695001.**
- **3 THE CIRCLE INSPECTOR OF EXCISE, M/S.UNITED SPIRITS, VARANADU, CHERTHALA- 688524.**
## **BY SR.GOVERNMENT PLEADER SRI.C.K.GOVINDAN**
## **RESPONDENT/S:**
**M/S.UNITED SPIRITS LTD. VARANADU, CHERTHALA-688524, REPRESENTED BY ITS GENERAL MANAGER K.JAGADISHWARLU.**
**R1 BY ADV. SRI.RAJU K.MATHEWS**
**THIS REVIEW PETITION HAVING BEEN FINALLY HEARD ON 06.03.2020, ALONG WITH RP.10/2020 AND CONNECTED CASES, THE COURT ON THE SAME DAY PASSED THE FOLLOWING:**
**RP.No.10 of 2020 & - 13 - connected cases**
## **IN THE HIGH COURT OF KERALA AT ERNAKULAM**
## **PRESENT**
**THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN**
## **&**
**THE HONOURABLE MR. JUSTICE ASHOK MENON**
**FRIDAY, THE 06TH DAY OF MARCH 2020 / 16TH PHALGUNA, 1941**
**RP.No.58 OF 2020 IN WA. 1764/2012**
**AGAINST THE JUDGMENT IN WA 1764/2012 DATED 08.02.2019 OF HIGH COURT OF KERALA**
## **REVIEW PETITIONER/S:**
**1 STATE OF KERALA REPRESENTED BY SECRETARY TO GOVERNMENT, TAXES DEPARTMENT, SECRETARIAT, THIRUAVANANTHAPURAM-695 001. 2 THE COMMISSIONER OF EXCISE, COMMISSIONERATE OF EXCISE, THIRUAVANANTHAPURAM-695 001.**
**3 THE INSPECTOR OF EXCISE, UNITED SPIRITS, KANJIKODE, PALAKKAD, PIN-691 001.**
## **BY SR.GOVERNMENT PLEADER SRI.C.K.GOVINDAN**
## **RESPONDENT/S:**
**UNITED SPIRITS LTD. UNIT PALAKKAD, KANJIKODE, PALAKKAD, REPRESENTED BY ITS GENERAL MANAGER V.REGHUNATH, PIN-691 001.**
## **R1 BY ADV. SRI.RAJU K.MATHEWS**
**THIS REVIEW PETITION HAVING BEEN FINALLY HEARD ON 06.03.2020, ALONG WITH RP.10/2020 AND CONNECTED CASES, THE COURT ON THE SAME DAY PASSED THE FOLLOWING:**
**RP.No.10 of 2020 & connected cases**
**- 14 -**
# **IN THE HIGH COURT OF KERALA AT ERNAKULAM**
# **PRESENT**
**THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN**
**&**
**THE HONOURABLE MR. JUSTICE ASHOK MENON**
**FRIDAY, THE 06TH DAY OF MARCH 2020 / 16TH PHALGUNA, 1941**
**RP.No.92 OF 2020 IN WA. 1924/2012**
**AGAINST THE JUDGMENT IN WA 1924/2012 DATED 08.02.2019 OF HIGH COURT OF KERALA**
## **REVIEW PETITIONER/S:**
**1 STATE OF KERALA REPRESENTED BY SECRETARY TO GOVERNMENT, TAXES DEPARTMENT, SECRETARIAT, THIRUVANANTHAPURAM-695 001. 2 THE COMMISSIONER OF EXCISE, COMMISSIONERATE OF EXCISE, THIRUVANANTHAPURAM-695 001. 3 THE CIRCLE INSPECTOR OF EXCISE, M/S UNITED SPIRITS, VARANADU, CHERTHALA-688 524. BY SR.GOVERNMENT PLEADER SRI.C.K.GOVINDAN**
## **RESPONDENT/S:**
**M/S UNITED SPIRITS LTD. VARANADU, CHERTHALA-688 524, REPRESENTED BY ITS GENERAL MANAGER.K.JAGADISHWARLU.**
**R1 BY ADV. SRI.RAJU K.MATHEWS.**
**THIS REVIEW PETITION HAVING BEEN FINALLY HEARD ON 06.03.2020, ALONG WITH RP.10/2020 AND CONNECTED CASES, THE COURT ON THE SAME DAY PASSED THE FOLLOWING:**
**- 15 -**
**RP.No.10 of 2020 & connected cases**
**K.Vinod Chandran & Ashok Menon, JJ. ---------------------------------------R.P.No.10 of 2020 in W.A.No.1917 of 2012, R.P.No.1146 of 2019 in W.A.No.1864 of 2012, R.P.No.1162 of 2019 in W.A.No.1910 of 2012, R.P.No.1164 of 2019 in W.A.No.1863 of 2012, R.P.No.1172 of 2019 in W.A.No.2100 of 2012, R.P.No.1176 of 2019 in W.A.No.1946 of 2012, R.P.No.1180 of 2019 in W.A.No.1938 of 2012, R.P.No.1183 of 2019 in W.A.No.1552 of 2016, R.P.No.1194 of 2019 in W.A.No.1940 of 2012, R.P.No.14 of 2020 in W.A.No.1919 of 2012, R.P.No.30 of 2020 in W.A.No.1933 of 2012, R.P.No.50 of 2020 in W.A.No.1862 of 2012, R.P.No.58 of 2020 in W.A.No.1764 of 2012 & R.P.No.92 of 2020 in W.A.No.1924 of 2012 ---------------------------------------Dated this the 06[th] day of March, 2020**
## **ORDER**
## **K. Vinod Chandran,J:**
**The review petitions are filed by the State, against a common judgment passed in a batch of Writ Appeals. The specific ground raised is with respect to the amendment brought out to the Industries (Development and Regulation) Act, 1951 by Industries (Development and Regulation) Amendment Bill, 2015. Earlier the Industries (Development and Regulation) Act, 1951 included in the First Schedule 'Fermentation Industries', which has been amended by the Amendment Act of 2016 as 'Fermentation Industries (Other than Potable Alcohol)'. In such circumstances the levy ought to be upheld, is the submission of the learned Senior Government Pleader.**
**RP.No.10 of 2020 & - 16 - connected cases**
**2. We notice that the challenge was against the levy of import fee made on special spirit brought into the State from outside for the purpose of manufacturing Indian Made Foreign Liquor ['IMFL' for brevity]. This was also on the basis of SRO.330/1996 dated 30.03.1996, wherein the levy was on IMFL at the rate of Rs.5/- on proof litre. We found that the levy though permitted on IMFL, was made on the imported special spirit; which by itself was not potable liquor nor IMFL. The item imported though is admittedly for manufacture of IMFL, was not potable liquor.**
**3. We also found that the levy cannot be upheld as a fee since there is no contention raised of any regulatory measure being employed. The Abkari Act, specifically Sections 6, 7, 17 and 18, to which the levy was sought to be traced, in those provisions speak of 'liquor' and 'drug'. We also relied on** _**State of Kerala v**_ **.** _**Chemplast Sanmar Limited**_ **[** _**2019 (1) KLT 123**_ **], in which a Division Bench found, looking at the definition of 'spirits', that earlier it included the words 'whether it is denatured or not', which was omitted by way of an amendment in 1996. The definition of 'liquor' also included 'methylated spirits', which also stood omitted by the very same Act 4 of 1996. The provisions of the Abkari Act hence, was found to be**
**RP.No.10 of 2020 & - 17 - connected cases**
**clearly indicating that they do not relate to transport or transit of denatured spirit, methyl alcohol or methanol.**
**4. We also found that the proviso to Section 6 of the Abkari Act excludes any import fee on rectified spirit or Extra Neutral Alcohol including absolute alcohol intended to be used for the manufacture of liquor meant for human consumption, having been inserted by Act 3 of 2010 with retrospective effect from 30.03.1996.**
**5. We do not think that the amendment made to the Industries (Development and Regulation) Act is at all relevant to the matter in issue. The submission of the learned Government Pleader seems to be that even with respect to special spirit which is intended for the manufacture of potable liquor there could be regulatory measures brought out by the State. We agree with the aforesaid submission; but, however, no levy is seen made as a regulatory measure, as we noticed earlier. In fact, we extracted the powers as conceded to the State by the decision in** _**Synthetics and Chemicals Ltd. & Ors v**_ **.** _**State of U.P. & Ors**_ **. [** _**(1990) 1 SCC 109**_ **] in which clause (b) of paragraph 86 specifically permitted the State to lay down regulations to ensure that non-potable alcohol is not diverted and misused as a substitute for potable alcohol.**
**RP.No.10 of 2020 & - 18 - connected cases**
**The State, however, has not brought in any such regulatory measure and the levy now made at Rs.5/- per proof litre is on IMFL and not on special spirits. The levy is also on import which is prohibited by the proviso to Section 6, on rectified spirit or Extra Neutral Alcohol including absolute alcohol meant for manufacture of liquor for human consumption. We find no reason to review the judgment passed.**
**The Review Petitions are rejected,** _**in limine**_ **.**
**Sd/K.VINOD CHANDRAN JUDGE**
**Sd/ASHOK MENON JUDGE**
**Vku/-**
**RP.No.10 of 2020 & - 19 - connected cases**
## **APPENDIX OF RP 10/2020**
## **PETITIONER'S/S ANNEXURES:**
|**ANNEXURE A1**|**THE COPIES OF THE INDUSTRIES**|
|---|---|
||**(DEVELOPMENT AND REGULATION) AMENDMENT**|
||**BILL, 2015 (BILL NO. 266 OF 2015)**|
||**TOGETHER WITH THE STATEMENT OF OBJECTS**|
||**AND REASONS THERETO.**|
|**ANNEXURE A2**|**THE COPY OF THE INDUSTRIES (DEVELOPMENT**|
||**AND REGULATION) AMENDMENT ACT, 2016**|
||**PUBLISHED IN THE GAZETTE OF INDIA**|
||**DATED 14-05-2016.**|
**RP.No.10 of 2020 & - 20 - connected cases**
## **APPENDIX OF RP 1146/2019**
## **PETITIONER'S/S ANNEXURES:**
## **ANNEXURE A1**
**THE COPIES OF THE INDUSTRIES (DEVELOPMENT AND REGULATION) AMENDMENT BILL, 2015(BILL) NO.266 OF 2015) TOGETHER WITH THE STATEMENT OF OBJECTS AND REASONS THERETO,**
**ANNEXURE A2**
**THE COPY OF THE INDUSTRIES (DEVELOPMENT AND REGULATION) AMENDMENT ACT.2016 PUBLISHED IN THE GAZETTE OF INDIA DATED 14.05.2016.**
**RP.No.10 of 2020 & - 21 - connected cases**
## **APPENDIX OF RP 1162/2019**
## **PETITIONER'S/S ANNEXURES:**
**ANNEXURE A-1**
**THE COPIES OF THE INDUSTRIES (DEVELOPMENT AND REGULATION) AMENDMENT BILL, 2015 (BILL NO. 266 OF 2015) TOGETHER WITH THE STATEMENT OF OBJECTS AND REASONS THERETO.**
**ANNEXURE A-2**
**THE COPY OF THE INDUSTRIES (DEVELOPMENT AND REGULATION) AMENDMENT ACT, 2016 PUBLISHED IN THE GAZETTE OF INDIA DATED 14-05-2016.**
**RP.No.10 of 2020 & - 22 - connected cases**
## **APPENDIX OF RP 1164/2019**
## **PETITIONER'S/S ANNEXURES:**
## **ANNEXURE A1**
**THE COPIES OF THE INDUSTRIES (DEVELOPMENT AND REGULATION) AMENDMENT BILL, 2015 (BILL NO.266 OF 2015) TOGETHER WITH THE STATEMENT OF OBJECTS AND REASONS THERETO.**
**ANNEXURE A2**
**THE COPY OF THE INDUSTRIES (DEVELOPMENT AND REGULATION) AMENDMENT ACT, 2016 PUBLISHED IN THE GAZETTE OF INDIA DATED 14.05.2016.**
**RP.No.10 of 2020 & - 23 - connected cases**
## **APPENDIX OF RP 1172/2019**
## **PETITIONER'S/S ANNEXURES:**
## **ANNEXURE A-1**
**THE COPIES OF THE INDUSTRIES (DEVELOPMENT AND REGULATION) AMENDMENT BILL, 2015(BILL NO.266 OF 2015) TOGETHER WITH THE STATEMENT OF OBJECTS AND REASONS THERETO.**
**ANNEXURE A2**
**THE COPY OF THE INDUSTRIES (DEVELOPMENT AND REGULATION) AMENDMENT ACT, 2016 PUBLISHED IN THE GAZETTE OF INDIA DATED 14.05.2016.**
**RP.No.10 of 2020 & - 24 - connected cases**
## **APPENDIX OF RP 1176/2019**
## **PETITIONER'S/S ANNEXURES:**
## **ANNEXURE A1**
**THE COPIES OF THE INDUSTRIES (DEVELOPMENT AND REGULATION) AMENDMENT BILL, 2015 (BILL NO.266 OF 2015) TOGETHER WITH THE STATEMENT OF OBJECTS AND REASONS THERETO.**
**ANNEXURE A2**
**THE COPY OF THE INDUSTRIES (DEVELOPMENT AND REGULATION) AMENDMENT ACT, 2016 PUBLISHED IN THE GAZETTE OF INDIA DATED 14/05/2016.**
**RP.No.10 of 2020 & - 25 - connected cases**
## **APPENDIX OF RP 1180/2019**
## **PETITIONER'S/S ANNEXURES:**
## **ANNEXURE A1**
**THE COPIES OF THE INDUSTRIES (DEVELOPMENT AND REGULATION) AMENDMENT BILL, 2015 (BILL NO.266 OF 2015) TOGETHER WITH THE STATEMENT OF OBJECTS AND REASONS THERETO.**
**ANNEXURE A2**
**THE COPY OF THE INDUSTRIES (DEVELOPMENT AND REGULATION) AMENDMENT ACT, 2016 PUBLISHED IN THE GAZETTE OF INDIA DATED 14.5.2016.**
**RP.No.10 of 2020 & - 26 - connected cases**
## **APPENDIX OF RP 1183/2019**
## **PETITIONER'S/S ANNEXURES:**
## **ANNEXURE A1**
**THE COPIES OF THE INDUSTRIES (DEVELOPMENT AND REGULATION) AMENDMENT BILL, 2015 (BILL NO.266 OF 2015) TOGETHER WITH THE STATEMENT OF OBJECTS AND REASONS THERETO.**
**ANNEXURE A2**
**THE COPY OF THE INDUSTRIES (DEVELOPMENT AND REGULATION) AMENDMENT ACT, 2016 PUBLISHED IN THE GAZETTE OF INDIA DATED 14.5.2016.**
**RP.No.10 of 2020 & - 27 - connected cases**
## **APPENDIX OF RP 1194/2019**
## **PETITIONER'S/S ANNEXURES:**
## **ANNEXURE A1**
**THE COPIES OF THE INDUSTRIES (DEVELOPMENT AND REGULATION) AMENDMENT BILL, 2015 (BILL NO.266 OF 2015) TOGETHER WITH THE STATEMENT OF OBJECTS AND REASONS THERETO.**
**ANNEXURE A2**
**THE COPY OF THE INDUSTRIES (DEVELOPMENT AND REGULATION) AMENDMENT ACT, 2016 PUBLISHED IN THE GAZETTE OF INDIA DATED 14.05.2016.**
**RP.No.10 of 2020 & - 28 - connected cases**
## **APPENDIX OF RP 14/2020**
## **PETITIONER'S/S ANNEXURES:**
**ANNEXURE A1**
**THE COPIES OF THE INDUSTRIES (DEVELOPMENT AND REGULATION) AMENDMENT BILL 2015 (BILL NO. 266 OF 2015 TOGETHER WITH THE STATEMENT OF OBJECTS AND REASONS THERETO.**
**ANNEXURE A2**
**THE COPY OF THE INDUSTRIES (DEVELOPMENT AND REGULATION) AMENDMENT ACT 2016 PUBLISHED IN THE GAZETTE OF INDIA DATED 14.05.2016.**
**RP.No.10 of 2020 & - 29 - connected cases**
## **APPENDIX OF RP 30/2020**
## **PETITIONER'S/S ANNEXURES:**
**ANNEXURE A1**
**THE COPIES OF THE INDUSTRIES (DEVELOPMENT AND REGULATION) AMENDMENT BILL, 2015 (BILL NO 266 OF 2015) TOGETHER WITH THE STATEMENT OF OBJECTS AND REASONS THERETO.**
**ANNEXURE A2**
**THE COPY OF THE INDUSTRIES (DEVELOPMENT AND REGULATION) AMENDMENT ACT, 2016 PUBLISHED IN THE GAZETTE OF INDIA DATED 14.5.2016**
**RP.No.10 of 2020 & - 30 - connected cases**
## **APPENDIX OF RP 50/2020**
## **PETITIONER'S/S ANNEXURES:**
**ANNEXURE A1**
**THE COPIES OF THE INDUSTRIES (DEVELOPMENT AND REGULATION) AMENDMENT BILL, 2015 (BILL NO.266 OF 2015) TOGETHER WITH THE STATEMENT OF OBJECTS AND REASONS THERETO.**
**ANNEXURE A2**
**THE COPY OF THE INDUSTRIES (DEVELOPMENT AND REGULATION) AMENDMENT ACT, 2016 PUBLISHED IN THE GAZETTE OF INDIA DATED 14.05.2016.**
**RP.No.10 of 2020 & - 31 - connected cases**
## **APPENDIX OF RP 58/2020**
**PETITIONER'S/S ANNEXURES:**
## **ANNEXURE A1**
**THE COPIES OF THE INDUSTRIES (DEVELOPMENT AND REGULATION) AMENDMENT BILL 2015 (BILL NO.266 OF 2015) TOGETHER WITH THE STATEMENT OF OBJECTS AND REASONS THERETO.**
**ANNEXURE A2**
**THE COPY OF THE INDUSTRIES (DEVELOPMENT AND REGULATION) AMENDMENT ACT, 2016 PUBLISHED IN THE GAZETTE OF INDIA DATED 14.05.2016.**
**RP.No.10 of 2020 & - 32 - connected cases**
## **APPENDIX OF RP 92/2020**
**PETITIONER'S/S EXHIBITS:**
## **ANNEXURE A1**
**THE COPIES OF THE INDUSTRIES (DEVELOPMENT AND REGULATION) AMENDMENT BILL, 2015 (BILL NO 266 OF 2015) TOGETHER WITH THE STATEMENT OF OBJECTS AND REASONS THERETO**
**ANNEXURE A2**
**THE COPY OF THE INDUSTRIES (DEVELOPMENT AND REGULATION) AMENDMENT ACT, 2016 PUBLISHED IN THE GAZETTE OF INDIA DATED 14.5.2016**
**[ TRUE COPY ]**