MOHAN MEAKlN BREWERIES LTD. vs EXCISE & TAXATION COMMER. CHANDIGARH & ORS.

The Supreme Court upheld the validity of Rules 8 and 9 of the Punjab Bonded Warehouse Rules, 1957, ruling that they do not impose duties but serve a regulatory purpose to prevent fraud. The Court found that the Financial Commissioner acted within his powers under Sections 59 and 22 of the Act, and that countervailing duty can be imposed on liquor manufactured elsewhere in India, regardless of its existence in Chandigarh. The appeals were dismissed, affirming the imposition of duty on the excess wastage found during inspections.