United Spirits Limited v. State of Rajasthan
Case brief
What is this about?
Several liquor manufacturers challenged compounding orders levying fees far above the Rs.5,000 maximum fine under Section 58(c) of the Rajasthan Excise Act, 1950, the provision invoked in the notices. The court held that the compounding fee cannot exceed the fine prescribed by the penal section and quashed the impugned orders.
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 Rajasthan Excise Act, 1950.