The burden of proof rests on the authority to establish the facts, and failure to do so can lead to the quashing of orders.

The petitioner, M/s Spicy Beverage Private Limited (hereinafter referred to as ‘the petitioner Company’), a private limited company, engaged in the manufacture and supply of country liquor in the State of Bihar, was granted exclusive privilege for manufacturing country liquor and supplying the same from its warehouse to Bihar State Beverage Corporation Limited in the district of Nalanda. The exclusive privilege, which was initially granted for the period 01.07.2009 to 31.03.2012, was further extended till 30.11.2012.

2. In terms of the conditions of license, the petitioner Company was required to manufacture country liquor, do packaging thereof in sachets, the sachet containing either 200 ML of country liquor or 400 ML of country liquor by adhering to the strength of 60º UP.

3. So far as quality is concerned, Rule 22(i) of Bihar Country Liquor Bottling Rules, 2004, prescribes that the country liquor should not be, in any case, weaker or stronger than 0.3 degree of the prescribed strength and in case the prescribed strength is found to be weaker or stronger than 0.3 degree of the prescribed strength, action shall be taken under Section 42 of the Bihar Excise Act, 1915.

4. So far as the quantity of country liquor is concerned, the 1st Schedule to the Legal Metrology (Packaged Commodities) Rules, 2011, prescribes a maximum permissible error of 4.5 per cent and 3 per cent in excess or wastefulness of the declared quantity of packages of 100-200 ML and 400 ML is permitted and, thus, in a 200 ML sachet of country liquor, an error of 9 ML is permitted and, in a 400 ML sachet of country liquor, an error of 12 ML is permitted.

5. On 06.09.2012, the Secretary, Excise and Prohibition Department, Patna, conducted inspection of the warehouse–cum-sacheting plant of the petitioner Company, at Nalanda, the godown of Bihar State Beverage Corporation Limited and several other country liquor retail outlets and samples of manufactured country liquor were seized from them and sent for examination to the Excise Chemist, Bihar, who, in turn, by its letter, dated 07.09.2012, reported that while the samples of country liquor collected from the warehouse –cum-sacheting plant of the petitioner Company at Nalanda and the godown of Bihar State Beverage Corporation Limited conformed to the prescribed strength and quantity, the samples of country liquor, taken from the different retail outlets, at Nalanda, were not of prescribed strength and quantity.

6. In the light of the Chemist’s report and, on the presumption that the samples of country liquor, taken from the retail outlets, were supplied by the petitioner Company, the Excise Commissioner, Bihar, Patna, on 13.09.2012, issued direction to the Collector, Nalanda, to calculate the loss of revenue incurred by the Government due to the manufacture and supply of sub-standard country liquor by the petitioner Company to the retail outlets at Nalanda. The letter, dated 13.09.2012, addressed to the Collector, Nalanda, if translated into English, reads thus:

“Sub: With Respect to irregularity upon checking of samples collected by a team constituted at the HQ level on 6.09.2012 from various retail country liquor shops in Nalanda district.

Sir,

With respect to the above subject matter, it is stated that on 6.09.2012, a team constituted at HQ level obtained the samples of country liquor obtained from country liquor warehouse, Nalanda District and other country liquor shops which were examined. The Excise Chemical Analyst, Bihar, Patna by his Report dated 7.9.2012, as contained in Memo No. 1798 has issued a test Report of the samples (Copy enclosed), is which it has been reported that the strength and quantity of country liquor is less than the prescribed standard. Therefore, you are directed to obtain a show-cause from the manufactures and suppliers of country liquor, namely M/s Spicy Beverage Pvt. Ltd. For Manufacture and supply of country liquor less than the prescribed strength and quantity as per the