United Spirits Limited v. State of Rajasthan
Case brief
What is this about?
Excise authorities issued notices to liquor manufacturers under Section 58(c) of the Rajasthan Excise Act, 1950 for irregularities in alcohol strength and levied compounding fees far above the Rs.5,000 maximum fine. The court held that compounding under Section 70 must be read with Section 58(c), quashed the impugned orders and capped the fee at Rs.5,000 in each case.
What did the court decide?
Impugned orders quashed; respondents directed to impose compounding fee up to Rs.5,000 in each case pursuant to the notice given under Section 58(c) of the Act of 1950.