Cyriac Joseph, J.

Since these Writ Appeals are filed against the common judgment in O.P. Nos. 9666 of 2003,9996 of 2003, 10118 of 2003, 10119 of 2003 and 10345 of 2003 and since a common question arises in these Writ Appeals, they were heard together and are being disposed of through this common judgment.

2. The question raised in the Writ Petitions-is whether there is any provision in the Abkari Act or the Rules thereunder to enable the Distillery Units/ Blending units to avail themselves of the wastage for spirit/ liquor imported and whether duty could be levied for the entire stock which is not accounted for while spirit/liquor imported by these units. In the impugned judgment, the learned Single Judge held in favour of the petitioners and found that in view of the provisions contained in R.7(5) of the Kerala Foreign Liquor (Compounding, Blending and Bottling) Rules 1975 and R.55 of the Kerala Distillery and Warehouse Rules, 1968, the Distillery units/Blending units are entitled to claim allowance for wastage for spirit/liquor imported and that duty cannot be levied in respect of prescribed quantity, of spirit/liquor lost in transit. Aggrieved by the judgment of the learned Single Judge, the respondents in the Writ petitions have filed these appeals. The petitioners in Writ Petitions are the respondents in these appeals.

3. The petitioners are licensees under the Kerala Foreign Liquor (Compounding, Blending and Bottling) Rules 1975 (hereinafter referred to as "the Rules"). As licensees under the Rules, the petitioners are entitled to purchase spirit either from within the State of Kerala or to import it from other States for the purpose of compounding, blending and bottling of foreign liquor. According to R.7(1) of the Rules, a licensee may, under bond, without prior payment of duty, (i) import spirit, or (ii) obtain spirit from distilleries in the State. According to R.7(3), all consignments of spirits obtained by a licensee shall be verified by volume and strength jointly by the officer-in-charge and the licensee or his authorised agent. The net quantity received will be taken into account and verification report sent to the officer-in-charge of the distillery and the Assistance Excise Commissioner in order that duty may be collected on the excess wastage, if any. According to R.7(5), wastage allowance in the case of spirits allowed to be imported and in the case of spirits obtained from distilleries in the State shall be regulated by the provisions of the Kerala Distillery and Warehouse Rules, 1968 and the licensees shall pay duty at the tariff rate for excess wastage where such losses could not be accounted for to the satisfaction of the Assistant Excise Commissioner.

According to R.55(1) of the Kerala Distillery and Warehouse Rules, 1968, (hereinafter referred to as "the Distillery and Warehouse Rules") an allowance made for the loss in transit by leakage or evaporation or other unavoidable causes of spirits transported or exported under bond in wooden casks or receptacles shall be at the rate of 1% for a journey of every 400 Kms. or part thereof subject to a maximum of 4% for the whole journey. According to R.55(2) of the said Rules, if the spirits are transported or exported in metallic receptacles, tanker lorries or plastic/ polythene containers, the allowance made for loss in transit by leakage or evaporation or other unavoidable causes shall be at the rate of 0.1% for a journey of every 400 Kms. or part thereof subject to a maximum of 0.5% for the whole journey. But if the actual loss is less than the loss as computed under sub-rule (1) or (2), allowance shall be made only for the actual loss. In the light of R.7(5) of the Rules and R.55 of the Distillery and Warehouse Rules, the Excise authorities used to give wastage allowances to the petitioners, whether the spirit was imported or purchased from within the State. However, on 31-1-2003 the Excise Commissioner issued a circular No. XC1-2683/03 containing