M/S. GUPTA MODERN BREWERIES vs STATE OF JAMMU & KASHMIR .

The Supreme Court examined the validity of Rule 17 of the Jammu and Kashmir Distillery Rules, 1946, which mandates distillery licensees to pay salaries of government excise personnel. The Court held that the Rule lacks statutory backing under Section 25 of the Jammu and Kashmir Excise Act, 1901, and constitutes excessive delegation of legislative power, violating Article 14 and Article 265 of the Constitution. Consequently, the Court ruled the Rule as ultra vires and arbitrary, leading to the dismissal of the appeals against the High Court's orders.