M/S LILASONS DREWERIES (P) LTD. 7 ANR. vs STATE OF MADHYA PRADESH .

The Supreme Court held that Rule 22 of the Madhya Pradesh Brewery Rules, 1970, which allows for the demand of additional excise duty without it being due, is ultra vires the Madhya Pradesh Excise Act, 1915, specifically Section 62. The Court clarified that the demand cannot be characterized as a fee under Section 28, as it does not fall within the purview of the Act. Consequently, the demand was quashed, affirming that the State cannot impose a tax or excise duty through rules without legislative sanction.