T.J.Baby & Ohers vs Sae Od Kerala & Others

The Supreme Court addressed the liability of F.L. 1 and F.L. 3 license-holders under the Kerala Abkari Act regarding the payment of increased excise duty on unsold liquor stock post-amendment of Section 18. The Court held that the proviso to Section 18(3) permits the State to recover the difference in excise duty from these licensees, affirming the Division Bench's reversal of the Single Judge's decision. The Court concluded that all licensees, including F.L. 1 and F.L. 3, are liable for the increased duty effective from April 1, 1996.