1. The Kerala Abkari Act, the Rules and notifications, made and issued thereunder enable the export of Indian made foreign liquor from bonded distilleries/wharehouses in this State to places outside this State. The short question is whether the slightest delay in the production of the verification certificates from the Excise authorities of the importing State can alter the rate of excise duty even in case where, before the demand is made, there is proof that the liquor has been exported and delivered in another State.

2. This appeal is by the State, aggrieved by the decision of a learned Single Judge quashing the demand and the proceedings for recovery of excise duty from the petitioner, M/s. Mc. Dowell & Co. Ltd. The brief facts are these. The petitioner engaged in the business of distilling blending, compounding and bottling of Indian made foreign liquors in this State bad valid licences and permits issued by the Excise department from time to time under the Kerala Abkari Act and the Rules made thereunder. They obtained the necessary permits to export Indian made foreign liquor, from their bonded distilleries and warehouses in this State to places outside the State. I