Maharashtra Distilleries vs M&Unaincri.Pal Corporation Of ...

The Supreme Court held that Rectified Spirit imported by the appellant is not fit for human consumption and thus should be classified under Entry 37 of Class III of the Aurangabad City Municipal Corporation Octroi Rules, attracting a duty of 1.5%. The Court rejected the respondent's claim to impose a higher duty of 5% under Entry 7 of Class I, which pertains to articles for food and drink. The judgment reaffirmed the legal principle that the classification of goods for octroi duty must align with their intended use, as established in prior cases such as Synthetic and Chemicals Ltd. v. State of U.P. and State of U.P. v. Modi Distillery. The appeal was allowed, and the higher duty was set aside.