D.P.WADHWA, B.P.SINGH
Industrial Corporation Private Limited – Appellant
Versus
State Of Bihar – Respondent
D.P.WADHWA, J.
1. The principal question which requires determination in this batch of 13 writ applications is if the State can levy penalty for loss or wastage of molasses, and if so, under which law and to what extent. The Act involved would appear to be the Bihar Molasses Control Act, 1947 (for short the Molasses Act).
2. To illustrate the petitioner in C. W.J. C. No. 6845 of 1989 is engaged in the manufacture / production of spirit in its distillery at Lauriya under a licence issued to it in Form No. 28A, which licence, as noted above, is for the manufacture of spirit in the distillery for use in the manufacture of chemical and for industrial, scientific and other purposes. On May 25, 1989, the Commissioner, Excise, Bihar, gave a notice to the petitioner to deposit an amount of Rs. 72,96,135 /- by way of penalty in the Government Treasury within fifteen days of the receipt of the notice. The petitioner was also required to show cause as to why its licence be not cancelled for contravention of the conditions of the licence. The relevant portion of this notice reads as under (English Translation):
"In the year 1987-88 M/s. Panchrukhi Distillery, Panchrukhi, has produced f
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