BIMAL CHANDRA RANERJEE vs STATE OF MADHYA PRADESH

The Supreme Court ruled that the conditions imposed by the Madhya Pradesh Government on excise contractors, requiring them to purchase a minimum quantity of liquor and pay excise duty on unlifted quantities, were invalid. The Court held that the State Government lacked the authority under the Madhya Pradesh Excise Act, 1915, specifically sections 62(2)(d) and (h), to levy such duties, as the statute only permitted taxation on liquor that was actually imported, exported, or manufactured. Consequently, the demand notices issued by the State were declared invalid.