STATE OF U.P. vs SARAYA INDUSTRIES LTD.

The Supreme Court ruled that the State of Uttar Pradesh's policy requiring distilleries to obtain and affix security holograms under the Uttar Pradesh Excise Act, 1910, is valid and does not violate any statutory provisions. The Court held that the imposition of excise duty on the holograms is lawful and necessary to prevent duty evasion and smuggling. The judgment affirmed the legality of the circulars issued by the Excise Commissioner regarding the affixation of holograms and the procedures for their issuance and management.