State Of Madhya Pradesh & Others vs M/S K.C.T. Drinks Limited

The Supreme Court held that the High Court erred in quashing the levy of supervision and establishment costs on the respondent company, which holds a D-2 licence under the Distillery & Warehouse Rules, not the M.P. Breweries Rules. The Court clarified that the relevant licensing rules are framed under Section 18 and Section 62(2)(h) of the M.P. Excise Act, 1915, which empower the State Government to issue licenses and prescribe fees. The appeal was allowed, and the High Court's judgment was set aside.