STATE OF ANDHRA PRADESH vs Y. PRABHAKARA REDDY

The Supreme Court held that once the 'issue price' of liquor is determined, its components, including excise duty, cannot be treated separately, as they become inseparable parts of the total price. The Court overruled the prior decision in Atluri Brahamanandam v. Tahsildar of Gannavaram, stating that a lessee-licensee is not entitled to deduct excise duty from the issue price for short drawn quantities. The Court affirmed that the issue price is a single predetermined sum, and the demands raised under the Andhra Pradesh Excise (Amendment) Act X of 1984 were valid despite previous judicial rulings.