K. C. Agrawal, Actg. C.J.

1. For the excise year 1988-89, the petitioner M/s P. V. K. Distillery Limited, which is a public limited company and held licence in FORm PD 2, was selected by the Excise Commissioner on the basis of tenders submitted in FORm CL 23, for supplying spirit to bonded warehouses and wholesale depots. The petitioner had a distillery at Nandganj, district Ghazipur. It has bonded warehouses in Varanasi. The petitioner used to bring country spirit from Nandganj to bonded warehouses m Varanasi.

2. On the basis of a notification issued in exercise of the powers conferred by Clause (b) of sub-section (2) of Section 172, published in the official gazette dated 7th May, 1986, which came into effect from 8th May, 1986, octroi on goods and animals brought within the octroi limits of the Nagar Mahapalika, Varanasi, for consumption, use or sale therein, was to be levied at the rates shown in the Schedule, subject to the exemption given therein. Entry 19 of the Schedule, with which we are concerned in the present case, under Class I-Articles of food and drink for man and animals, reads as under :

"Wines, Liquors and alcohol, Indian or foreign preparation, i.e. all k