State's Obligation To Realize Excise Duty Illegally Collected By Wine Manufacturers: Bombay High Court Disposes PIL On Non-Realization Of Dues

The Bombay High Court has disposed of a Public Interest Litigation that sought to direct the State authorities to take appropriate measures for the recovery of excise duty and interest said to have been illegally collected by the wine manufacturers. The High Court observed that the State has an obligation to realize any excise duty illegally collected by the wine manufacturers. “Thus, the State is under legal obligation and mandate of the Hon'ble Supreme Court to realize the excise duty said to have been illegally collected by the wine manufacturers and there cannot be any doubt about such a duty cast upon the State.” In view of the Joint Commissioner's affidavit, the Court disposed of the petition and directed the authorities in the excise department to finalize the proceedings initiated on issuance of the show-cause/demand notices to the wine manufacturers within two months. “In the aforesaid circumstances, we dispose of this public interest litigation with a direction to the authorities in the excise department to finalize the proceedings initiated on issuance of the show-cause/demand notices to the wine manufacturers in respect of excise duty which is said to have been collected by such manufacturers from the consumers though they, under State Government's policy, were exempted from paying the excise duty.