Sri Malaprabha Co-Op Sugar Factory Ltd vs State Of Karnataka & Ors

The Supreme Court upheld the Karnataka High Court's decision regarding the pricing of rectified spirit under Rule 17 of the Karnataka Excise (Manufacture and Bottling of Arrack) Rules, 1987, declaring it unconstitutional and ultra vires. The Court emphasized that the State's power to fix prices must adhere to legislative delegation limits, which Rule 17 violated. The appeal was dismissed, affirming that the appellant, a captive distillery, had no grounds to challenge the pricing mechanism as it had accepted the terms without dispute.