STATE OF U.P. AND ORS. vs DELHI CLOTH MILLS & ANR.

The Supreme Court held that under the U.P. Excise Act, 1910, Sections 28 and 29, the imposition of excise duty on excess wastage of liquor in transit is valid. The Court clarified that the Act allows for a fixed wastage allowance, and any excess wastage is subject to taxation. The High Court's ruling that the State could not levy excise duty on wastage was overturned, affirming the State's authority to impose such duties as part of its regulatory framework.