K.C.P. Ltd. v. Government of A.P. and Ors. - (Supreme Court) (12 Aug 2015)

Collection of fee for preventing illegal activities of unrelated third parties a gambit for preventing manufacturers from exporting industrial alcohol

MANU/SC/0855/2015

Excise

Duty payable for grant of permit to export rectified spirit from the state, favouring buyers of rectified spirit in the state, is a tax not a fee. From that inference, the Supreme Court iterated that a duty, with the requirement of an indemnity bond, seeking to regulate, control and discourage export was ultra vires the state's jurisdiction. The Court, however, refrained from striking down the Andhra Pradesh Rectified Spirits Rules, 1971 in their entirety, given the need for preventing the illegal conversion of industrial alcohol to potable alcohol.

Relevant : Synthetics and Chemicals Limited v. State of UP MANU/SC/0595/1989

Tags : EXCISE RECTIFIED ALCOHOL DISCOURAGE EXPORT