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The Madras High Court has upheld the stipulation of the Commissioner for Prohibition and Excise on the yield for different kinds of spirits in different grades of molasses.
Holding that the rules could not be said to be ultra vires of the Prohibition Act as contended by Mohan Breweries Distilleries Pvt Ltd, Chennai, manufacturer of alcohol, the court said that the fact that there was no complaint of misuse of molasses or alcohol “is not a ground” to reduce the penalty imposed on the company.
Mr Justice K. Chandru heard a writ petition of the company challenging the State Government's order dated October 31, 2007 issuing show cause notice asking the company to explain why penalty should not be levied for alleged shortfall in production of natural spirit.
Notwithstanding petitioner's reply, the Commissioner for Prohibition imposed penalty. Explaining there were constraints in the operation of plant that resulted in company not being able to achieve optimum yield, the petitioner requested suitable allowance to be made in rate of yield and not to impose any penalty.
The Commissioner submitted that company's explanation was not acceptable and the levy of penalty was legal.
Having agreed to abide by rules, the petitioner could not turn back and challenge the validity of rules.
The judge held that no constitutional infringement of the rules was found and the petition was liable to be rejected.
> subramanian.v@thehindu.co.in
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