Govt. Of Andhra Pradesh And Ors. vs Mc Dowell & Co. Limited

The Supreme Court upheld the High Court's decision that certain provisions of Rule 66(2) of the Andhra Pradesh Distillery Rules, 1970, as amended by G.O.Ms. No. 20, were invalid as they conflicted with Section 21 of the Andhra Pradesh Excise Act, 1968. The Court ruled that excise duty must be based solely on the accepted strength of liquor produced, not on actual strength within tolerance limits. The Court confirmed that the amendment did not have retrospective effect, thus invalidating the demand for differential excise duty for the years prior to the amendment's publication date.