The Tripura High allowed a Writ petition filed under Article-226 of the Constitution of India for setting aside the order levying excise duty on the Petitioner. A division bench of this Court comprising Hon’ble Chief Justice T. Amarnath Goud and Hon’ble Mr. Justice Arindam Lodh held that manufacturing of liquid Sanitizer does not qualify for levying of excise duty.
Brief Facts:
The Petitioner does business in Liquor. Along with the license granted by the Excise Department of the State, he was granted an ENA permit. The petitioner made liquid Sanitizer from alcohol and the same was supplied in the market. The respondents levied excise duty on the sale of sanitizer by the Petitioner. Aggrieved by the same, the Petitioner has filed the present writ petition.
Contentions of the Petitioner:
The Learned Counsel for Petitioner contended that he was manufacturing liquid Sanitizer from alcohol. The alcohol was not used for making commercial portable liquor for human consumption. Therefore, the alcohol which has been supplied and used for commercial activity by way of manufacturing liquid Sanitizer cannot be treated as the alcohol used for manufacturing portable alcohol for human consumption of liquor. Hence, the Excise duty which has been levied by the respondents is unlawful.
Contentions of the Respondent:
The Learned Counsel for the Respondent opposed the petition, contending that since the petitioner has conducted the commercial transactions by selling liquid Sanitizers, the excise duty imposed upon the petitioner is just and proper.
Observation of the Court
This Court perused the Tripura Excise Act, 1987 in which excise duty is defined as any such duty as “mentioned in entry 51 of List-II in the Seventh Schedule to the Constitution.” Entry 51 of List-II in the Seventh Schedule to the Constitution provides for excise duty on manufacturing of alcoholic liquor for human consumption.
In view of the distinction under Schedule 7 List II Entry 51 of the Constitution of India, the Court observed that the case of the petitioner does not attract levy of any excise duty as the manufacturing of liquid Sanitizer cannot be treated as the portable alcohol for human consumption for commercial purpose.
The decision of the Court:
The Tripura High Court allowed the writ petition and set aside the excise duty levied upon the petitioner.
Case Title: Rising East Liquor Pvt. Ltd. v. State of Tripura & Ors.
Coram: Hon’ble Chief Justice T. Amarnath Goud and Hon’ble Justice Arindam Lodh
Case no.: WRIT PETITION (CIVIL) NO. 566 OF 2021
Advocate for the Petitioner: Mr. P.K. Ghosh, Advocate.
Advocate for the Respondents: Mr. D. Bhattacharya, and Mr. S. Saha, Advocate.
Read Judgment ;
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