In Brief
The State of Madhya Pradesh appealed against a High Court order quashing a demand of Rs. 13,24,189.50 for excess establishment charges imposed on liquor distillery licensees under Rule 4(41) of the Madhya Pradesh Distillery Rules, 1995. The High Court had relied on Lilasons Breweries v. State of M.P. to strike down the demand. The Supreme Court reversed the High Court's decision, holding that: (1) the writ petitioner did not intend to challenge the rule's vires as no specific prayer was made; (2) Lilasons cannot apply as Section 28 of the Act was amended after that judgment; (3) establishment charges are valid licence fees under Sections 27-28; and (4) the demand merits reconsideration by the State upon respondent's representation, given factual deficiencies in the notice.
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