- (1.) A Division Bench hearing this First Appeal found itself in disagreement with the view taken by this Court in Ram Gopal vs. State of U.P., 1992 ALJ 237, and referred this matter to larger bench. We formulated following question on 28.1.2005 to be decided in this reference: "Whether the interest can be realised under Section 38-A of the U.P. Excise Act, 1910 on the principal amount for the period during which the Court had stayed realisation of the duty."
(2.) Brief facts giving rise to the First Appeal are that the State Government on 10.6.1976 issued a Notification whereby it enhanced the Export Duty on Indian Made Foreign Liquor from 50 paisa per litre, to Rs. 1.75 paisa per litre and imposed fresh duty of Rs. 1.75 paisa per litre on Rectified Spirit exported to U.P. from other parts of India. The respondents and other distilleries challenged the said notification before this Court by writ petition No. 1150/1975, and other writ petitions. These writ petitions were finally disposed of on 31.1.1977. The operative portion of the order is quoted as under; "In the result these writ petitions succeed only in so far as the impugned levy of Export Duty on the rectified spirit, but in other respect these writ petitions fail. We quash the impugned Notification issued by the State of Uttar Pradesh in so far as only as they seek levy export duty on rectified spirit. We issue a writ restraining the State of Uttar Pradesh and its officers from levying and collecting Export Duty and rectified spirit exported to other States and Union Territory. We further direct the respondents to refund to the petitioners any amount collected from them towards Export Duty on rectified spirit except to this limited extent, we dismiss these writ petitions."
(3.) The respondents filed a Civil Appeal No. 2256/1977 in the Supreme Court, along with Civil Misc. Petition No. 9456/1977. The Supreme Court passed following interim orders; "Stay granted for realization of past duty as well as the dues which may be assessed hereinafter on the applicant's furnishing a bank guarantee to the satisfaction of the excise authority (Commissioner) for the amount due from them in excess of the amount liable to the refundable to them in regard to export duty on Indian made Foreign Liquor on rectified spirit. The appellant had indicated that this sum refundable to them is Rs. 13,52,861.17 as on 26.9.1977.";