ASHOK BHUSHAN, J. - (1.) These appeals have been filed by the State of Madhya Pradesh against the judgment and order dated 04.05.2000 of the High Court by which judgment the writ petition filed by the Respondents has been allowed and demand of Rs. 13,24,189.50, claiming to be excess expenditure incurred on State Government establishment on Distillery of respondents has been set-aside.
(2.) Brief facts of the case are: The Respondent Kedia Great Galeon Ltd. & Anr. held a licence under Madhya Pradesh Distillery Rules, 1995 (hereinafter referred to as Rules 1995) for manufacturing of Liquor/Spirit. A notice dated 23rd March, 1999 was issued to Respondent No. 1 by the District Excise Officer, demanding an amount of Rs. 13,24,189.50 as excess expenditure on the establishment of officers and employees as per Rule 4(41) of Madhya Pradesh Distillery Rules, 1995 pertaining to year 1995-96, 1996-97 and 1997-98.
(3.) The Respondents aggrieved by the above notice filed a writ petition in the High Court of Madhya Pradesh, Bench at Indore being Writ Petition No. 589 of 1999. The Respondent in its writ petition placed reliance on a judgment of this Court in M/s. Lilasons Breweries (Pvt.) Ltd. v. State of Madhya Pradesh and Others, (1992) 3 SCC 293, in which case Rule 22 of Madhya Pradesh Brewery Rules, 1970 which also entitled the State to realise from the brewery charges on officers exceeding five per cent of the duty leviable was struck down. Respondents pleaded in the writ petition that Rule 4(41) of the Rules, 1995 is also non est and void, consequently demand raised on the strength of such rule is liable to be struck down. In the writ petition following prayers were made in Para 7 by the Respondents: "(i) A writ, direction or order in the nature of mandamus or as deemed fit be issued quashing the order Annexure/2 and it be declared that no demand can be raised under Rule 4(41) of the Distillery Rules. (ii) Such other relief be granted as deemed fit. (iii) This petition be allowed with costs." ;