Judgement

SHAH, J. [On behalf of himself and P. B. Gajendragadkar, C.J.I., K. N. Wanchoo, and S. M. Sikri, JJ.] : The appellants-Kalyani Stores-deal in liquor at Rourkela, District of Sundergarh in the State of Orissa. The appellants held a license as retail vendors for "all types of foreign liquor" under the Bihar and Orissa Excise Act, 1915. The expression "foreign liquor" apparently includes Ale, Beer, Port, Cider and other fermented liquors, cordials, mixtures and other preparations containing spirit, perfumed spirit, perfumed spirit and all sorts of wines whether manufactured in India or abroad Under the Bihar and Orissa Excise Act, 1915 by a notification issued in 1937 under S. 27 a duty of Rs. 40 per L. P. Gallon was imposed and realised by the State of Orissa on foreign liquor of Indian manufacture imported into State of Orissa from other parts of India. For the year April 1, 1960 to March 31, 1961 duty was levied on "foreign liquor" imported by the appellants at the rate fixed in the notification issued in 1937. On March 31, 1961 in exercise of the powers conferred by S. 90 of the Bihar and Orissa Excise Act, 2 of 1915 the Board of Revenue enhanced the duty with effect from