Janata Liquor Agency, Gokak vs Deputy Commissioner of Entry Tax (Assessments-ii), Belgaum and Others

V.K. Singhal, J.-This appeal is filed against the order of the Karnataka Appellate Tribunal dated 30-1-1996 in respect of the Assessment Year 1992-93.

The dispute is with regard to the levy of entry tax under the Karnataka Tax on Entry of Goods into Local Areas for Consumption, Use or Sale Therein Act, 1979, on the purchase turnover of beer. There is an Entry 51 in the I Schedule to the Act which authorises the levy of tax on liquor including arrack and toddy. According to the submission of the learned Counsel for the appellant, beer is not a liquor. The Tribunal found that the generic name of beer is malt liquor. The word "liquor" has been defined under Section 2(18) of the Karnataka Excise Act, 1965, as under:

"2(18) "Liquor" includes-

(a) spirits of wine, denatured spirits, wine, beer, toddy and all liquids consisting of or containing alcohol or wash; and (b) any other intoxicating substance, which the State Government may by notification, declare to be liquor, for the purposes of this Act".

The Bombay High Court in Hotel Alankar v State of Maharashtra, (1990)79 STC 196 (Bom.), has considered the beer as a mild liquor.

In Jowitt''s Dictionary of English Law intoxicating liquors have been defined as follows:

" "Intoxicating liquor" means spirits, wine (including British wine), beer, porter, cider (including perry) and any other fermented, distilled or spirituous liquor but does not include liquor for the sale of which by wholesale no excise licence is required".

According to Words and Phrases, Volume 25, the word "beer" has been defined as follows:

""Beer", as it is ordinarily understood, and as it is defined in the dictionary, is "a fermented liquor". It is made from malted grain, with hops, or from the extract of roots and other parts of various plants, as spruce, ginger, sassafras, etc. It is known under various names, and designated as "ale", "porter", "stout", "strong beer", "small beer", "liquor", "spruce beer", etc. The Courts take notice that many of the beverages sold under the name of "beer" are not intoxicating, while the stronger kinds, as ale, porter, and strong beer, are of an intoxicating character".

From the above, it is clear that the beer is a liquor and liquor is a genus of which beer is a species. In these circumstances, the order passed by the Tribunal is in accordance with law and does not require any interference and the appeal is dismissed.