STATE OF BIHAR Vs. BIHAR DISTILLERY LIMITED

JUDGEMENT

(1.) LEAVE granted.

(2.) THE distribution and sale of country liquor in the State of Bihar is regulated by the Bihar Excise Act, 1915 and the rules made thereunder. It was a two-tier system. THE wholesale dealers (contractors) were lifting the liquor from the distilleries and supplying it to the retailers. Both the wholesale dealers and retailers were selected on the basis of auction/tender process. THE price at which the wholesaler supplied the country liquor from the warehouse to the retailer was fixed by the Government either statutorily or on the basis of negotiations between the wholesalers (contractors) and the Government. THE price so determined was known as the cost price of country liquor which was payable by the retailer at the time of taking delivery from the concerned warehouse. THE maintenance of warehouse was the responsibility of the wholesale supplier (Contractor).

(3.) ON 19/02/1990 the Excise Commissioner, Bihar addressed a letter to all the distilleries fixting the cost price of country liquor. Having regard to the crucial relevance of this letter it would be appropriate to extract the letter in full.