United Spirits Limited v. State of Rajasthan
Case brief
What is this about?
Connected writ petitions by liquor manufacturers challenged compounding orders levying fees far above the Rs.5,000/- fine cap, the proceedings having been initiated solely under Section 58(c) of the Rajasthan Excise Act, 1950. The court held the compounding fee cannot exceed the fine prescribed by that penal section, and quashed the impugned orders.
What did the court decide?
Impugned orders quashed; respondents directed to impose compounding fee upto Rs.5,000/- in each case in pursuance of the notice given under Section 58(c) of the Rajasthan Excise Act, 1950.