Order
1. We find that the conclusion of the High Court that no duty can be levied by the appellant State on rectified spirit, having regard to the provisions of the Constitution, has been upheld by this Court in the case of Synthetics and Chemicals Ltd. v. State of U.P It has been held there that the provisions in various State Acts which purport to levy a tax or charge upon industrial alcohol, also called rectified spirit and alcohol used and usable for industrial purposes, are unconstitutional.
2. Having regard to the fact that the provision in the State Act imposing the levy is unconstitutional, it is unnecessary to go into the appellants' argument based on a rule made in exercise of the rule-making power in the State Act. The rule concerned relates to duty to be paid on rectified spirit which is transported, a prescribed quantity being allowed to be deducted by way of leakage or evaporation. In the notice issued to the respondents it was such duty which was claimed in the sum of Rs 8,62,678. Duty itself not being leviable, that claim must also be held to be invalid.
3. The appeal is, accordingly, dismissed. There shall be no order as to costs.