Government Of Haryana vs Haryana Brewery Ltd. And Anr

The Supreme Court upheld the High Court's decision quashing the excise duty demand on beer brewed by the respondent for the years 1986-87 to 1988-89, stating that the wastage shown by the respondent was within permissible limits as per the Punjab Excise Act, 1914, specifically Sections 31 and 32. The Court clarified that the levy of excise duty must adhere to the prescribed limits and that the process of brewing does not yield alcohol until fermentation is complete. The Court concluded that the demand for excise duty was unjustified and affirmed the High Court's ruling.