KRISHNA GYANODAY SUGAR LTD. vs STATE OF BIHAR

The Supreme Court examined the validity of Rule 9 of the Bihar & Orissa Excise Rules, 1919, framed under the Bihar Excise Act, 1915, determining whether it is ultra vires the Act. The Court held that the appellants' distilleries, which manufacture both denatured spirit and potable liquor, are subject to the provisions of the Act and that the demand for establishment charges under Rule 9 is valid. Consequently, the appeals were dismissed, affirming the High Court's decision.