Manufacturers of beer liable to pay excise duty from the stage of fermentation – SC

State of U.P. & Ors. Vs. M/s. Mohan Meakin Breweries Ltd. & ANR. (Supreme Court of India)- The Supreme Court has set aside the ruling of the Allahabad high court and held that manufacturers of beer in the state are liable to pay excise duty from the stage of fermentation and not when beer was fit for human consumption. Assessee had challenged the imposition of duty from the stage of fermentation. The high court struck it down, stating that the point at which the liquor was exigible to duty was when it was capable of being consumed by human beings as a beverage. Therefore, the state government appealed to the Supreme Court. The question was at what stage does the beer exigible to duty. The court declared that “when the fermentation process is completed, it becomes an alcoholic liquor for human consumption and there is no legal impediment for subjecting beer to excise duty at that stage.”

IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NOs. 4708- 4709 of 2002

State of U.P. & Ors. … Appellants

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