STATE OF MADHYA PRADESH vs FIRM GAPPULAL ETC.

The Supreme Court held that under the Madhya Pradesh Excise Act, the State cannot levy excise duty on liquor not lifted by contractors, as such power is not authorized under Sections 26 and 62 of the Act. The term 'pratikar' was interpreted to mean excise duty, and the Court emphasized that rental is the consideration for the privilege of selling liquor. The appeals were dismissed, affirming the High Court's decision that the demand for excise duty on undrawn liquor was beyond the State's powers.