Bachawat, J. - (1.) The petitioner company, Mohan Meakin Breweries Ltd., manufactures and sells Indian made foreign liquor. Its distilleries are situated at Solan in Himachal Pradesh and at Lucknow and Mohan Nagar in Uttar Pradesh. It has depots for sale of its products at Patna and Ranchi in the State of Bhihar. Before October 13, 1967 it imported foreign liquor into the State of Bihar for Solan, Lucknow and Mohan Nagar for purposes of sale at its Patna and Ranchi depots on payment of duty at the current rate of Rs. 14.40 L. P. liters. Duty on the liquor from Solan was paid upon or before importation by making deposits in the State Bank of India at Patna and Ranchi. Duty on the liquor form Lucknow and Mohan Nagar was paid upon importation by making deposits with the Uttar Pradesh Government.
(2.) By a notification dated October 13, 1967 duty on foreign liquor was enhanced from Rs. 14.40 to Rs. 26.20 per L. P. litres with effect from November 1, 1967. By an order dated January 3, 1968 the Superintendent of Excise, Patna, directed the Company to pay by January 31, 1968 the difference in duty on the opening balance of India made foreign liquor in its stock on November 1, 1967. In this writ petition under Art. 32 of the Constitution the Company challenges the legality of the levy.
(3.) Duty on foreign liquor imported into State of Bihar is chargeable under Section 27 (1) (a) of the Bihar and Orissa Excise Act, 1915 (Bihar and Orissa Act II of 1915). Subject to any rules made under Section 90, Clause (12), the duty may be levied under Section 28 (a) in two ways. The first method as indicated in Section 28 (a) (i) is by payment upon or before importation either in the State of Bihar or in the State or territory from which the article is brought. This method is followed when the liquor is not imported under bond. The second method as indicated in Section 28 (a) (ii) is by payment upon issue for sale from a warehouse established, authorised or continued under the Act. In view of the first proviso to Section 28 the payment is made at the rate of duty in force on the date of issue of the article from the warehouse. This method is followed when the liquor is imported under a bond. The form of the bond at page 215 of the Bihar and Orissa Excise Manual, Vol. II, Part I, issued in 1957 shows that foreign liquor imported under bond is kept without payment of duty in a warehouse established with the approval of the Excise Commissioner under Sec. 15. In view of Section 17 no article can be removed from the warehouse unless duty has been paid or a bond has been executed for the payment thereof.;