STATE OF M.P. vs KEDIA GREAT GALEON LTD.

The Supreme Court upheld the High Court's decision to quash the demand notice issued under Rule 4(41) of the Madhya Pradesh Distillery Rules, 1995, citing the precedent set in M/s. Lilasons Breweries (Pvt.) Ltd. v. State of Madhya Pradesh, (1992) 3 SCC 293, which deemed similar demands void. The Court found that the demand for Rs. 13,24,189.50 was arbitrary and unreasonable, exceeding 150% of the total income of the distilleries. The Court concluded that the demand was not maintainable and affirmed the High Court's ruling.