( 1 ) MESSRS. Gujchem Distillers India Limited, a Company incorporated under the Companies Act, 1956 is one of the petitioners in Special civil Application Nos. 8877 of 1989 and 2916 of 1991. Messrs. Ashok Organics industries Limited is one of the petitioners in Special Civil Application No. 6546 of 1991. In Special Civil Application No. 8877 of 1989, the relief which is claimed is as under :- (A) to declare the impugned notification at Annexure a (Bombay Denatured spirits (Guj. Amendment) Rules, 1988) to be illegal, unconstitutional, without jurisdiction, null, void and of no effect whatsoever from 25th October, 1989. They have also prayed for refund of vend fee collected, with interest at the rate of 18% per annum.

( 2 ) IN Special Civil Application No. 2916 of 1991, the petitioners have challenged the Rules made in exercise of power conferred by clause (u) of sub-sec. (2) of Sec. 143 of the Bombay Prohibition Act, 1949 read with the proviso to sub-sec. (3) of the said Sec. 143. The Rules are known as : "the bombay Denatured Spirit (Gujarat Amendment) Rules, 1988". (2) (3) (2) SCC 42

( 3 ) ). The petitioners of Special Civil Application No. 6546 of 1991 have similarly challenged the Rules. Date : 20-6-2000

( 4 ) THE Division Bench at the stage of admission of Special Civil Application no. 8877 of 1989, considered the decision of the Apex Court in Writ Petition no. 182 of 1980, decided on 22-10-1989. The Constitution Bench of the Apex court in that case has taken the view that the State Legislature has no power to impose any vend fee. Therefore, in view of the Supreme Court judgment, no defence was available to the respondents. Considering the submissions in detail, following the Apex Court judgment, interim relief was granted in terms of paragraph 22 to be operative from 15-2-1990. The Court also stayed the operation of the order for a period of four weeks to enable the respondents to file Special Leave Petition against the order passed by the Court. It seems that the respondents have not challenged the order made by the Division Bench at the stage of admission. The Company is manufacturing Resins, Chemicals, sodium, Cargoxy Methyl Cellulose, Acetic Acid, Acetaldehyde etc. , at its factory situated at Billimora in Valsad District and at Ankleshwar factory in bharuch District. At the Ankleshwar factory, the petitioner manufactures Acetic acid, for which principal raw material is industrial alcohol, i. e. Special denatured spirit, denatured with 0. 5% Acetaldehyde. Even at Billimora, one of the raw materials used by the Company is industrial alcohol, i. e. Special denatured spirit, with 0. 5% benzene. The Company has obtained the licence to manufacture spirit from the Director of Prohibition and Excise under the provisions contained in the Bombay Prohibition (for Manufacture of Spirit) (Gujarat) Rules, 1963. It has a bonded warehouse. It is specifically averred by the Company that the Company obtains industrial alcohol/special Denatured spirit for its captive consumption at its Billimora factory from its own distillery after obtaining the requisite transport pass as prescribed under Rule 50 of the bombay Denatured Spirit Rules after paying the prescribed fees. Respondent no. 1 issued a notification, which has been published in Gujarat Government gazette, Part IV-B of February 11, 1988, by which the Bombay Denatured spirit (Gujarat Amendment) Rules, 1988, whereunder the said fee of "20 ps. " per litre, appearing in Rule 50, has been substituted by "50 ps. " per litre. The petitioners have prayed to declare this notification to be illegal, unconstitutional, without jurisdiction, null and void and has prayed for consequential reliefs.

( 5 ) ). The aforesaid petitioner also filed Special Civil Application No. 2916 of 1991.

( 6 ) ). The State Government issued the Notification, which has been published in Gujarat Government Gazette Part IV-B, on 21st December, 1990 in exercise of the powers conferred by clause (u) of sub-sec. (2) of

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