MOHAN MEAKINS BREWERIES LTD. DALIGANJ LUCKNOW ETC. versus CONTROLLER OF WEIGHTS AND MEASURES, U.P. LUCKNOW & ORS.

Citation: [1989] 1 S.C.R. 375 · Decided: 31-01-1989 · Supreme Court of India · Bench: K.N. SINGH · Disposal: Dismissed

Judgment (excerpt)

MOHAN MEAKINS BREWERIES LTD. DALIGANJ 
LUCKNOW ETC. 
• v. 
CONTROLLER OF WEIGHTS AND MEASURES, 
U.P. LUCKNOW & ORS. 
JANUARY 31, 1989 . 
[K.N. SINGH AND KULDIP SINGH, JJ.I 
A 
B 
U.P. Weights and Measures (Enforcement) Act, 1959: Section 2 
(jj)-'Use in transaction for trade orcommerce'-Vats used for Storing 
liquor-Notice issued for getting vats verified, · calibrated and C 
stamped-Whether valid Act-Whether applicable to manufacturer of 
liquor. 
The appellants, were engaged in mannfactnte and sale of liquor, 
under licence granted to them under the U .P. Excise Act. They installed 
vats in their Breweries' premises for the storage of liquor. The liquor D 
stored in vats was bottled and sold under the supervision of officers of 
the Excise Department. The Inspector of Weights and Measnres issued 
notices to them for getting their vats verified, calibrated and stamped in 
accordance with the provisions of the U.P Weights and Measures 
(Enforcement) Act, 1959. The appellants filed appeals against the 
notices issned by the Inspector on the gronnd that the provisions ot the 
E 
Act were not applicable to the appeilants' undertaking, manufacturing 
alcohol. The appeals were dismissed by the Respondent-Controller of 
Weights and measures. The appellants filed writ petitions before the 
High Court challenging the orders of the respondents. 
The High Conrt dismissed the petitions holding that the provi· 
F 
sions of the Act and the Notifications issued therennder were applicable 
to the manufacturers of liquor in the distillery, and the notices issued by 
the respondents for the calibration of the storage vats were legal and 
valid. 
· 
Aggrieved, the appellants filed appeals by special leave in this 
G 
Court contending that the High Court committed error in holding that 
the storage vats were required to be calibrated under the provisions of 
the Act, that the provisions of the Act would apply if measures were 
used for transaction in trade and commerce, but keeping alcohol in 
storage vats did not amount to transactions in trade ot toilllnerce, and 
that unless the storage vats were used in transaction i'ot trade aod 
H 
375 
A 
B 
c 
D 
376 
SUPREME COURT REPORTS 
[1989] 1 S.C.R. 
commerce, the provisions of the Act were not attracted. 
Dismissing the appeals, 
HELD: 1.1 Under the definition clause in s. 2(jj) of the U.P. 
Weights and Measures (Enforcement) Act, 1959, the legislature has 
given an artificial extended meaning to the expression "use in trans-
action for trade or commerce". According to the definition it means use 
for the purposes of determining or declaring the quantity of anything in 
terms of measurement of length or capacity or weight in or in connec-
tion with th~ els. (a) a'!d (b) mentioned therein. ClalJse (b) refers to any 
assessment of royalty; toll; duty or other dues. Thus, accor!ling to t!ie 
extended meaning, the provisions of the Act would be attracted if the 
assessment of royalty; toll; duty or dues is to be determined on the basis 
of tlJ~ quantity of ljnything in terms of measlJrement of lfngt!i, prep, 
VOll!me or weight. [379C-EI 
1.2 There is uo dispute that for the purposes of determiping 
excise duty on the liquor produced by a manufacturer, the assessment is 
made on the basis of the volume of the liquor produced and sold. Since 
volume of the liquor produced and stored in vats is connected with the 
assessment of excise duty, it is covered by the expression "use in trans-
action for trade or commerce". [379E-F] 
E 
1.3 Ordinarily, the storage of alcohol in vats by itself may not 
F 
amount to transaction for trade or commerce but under the extended 
meaning of the expression under s. 2(jj), even the storage of liquor in 
vats would be covered by the expression "use in transaction for trade or 
commerce" as volume of the· liquor is necessary to be determined in 
connection with the assessment of excise duty. [379F-GI 
l.4 The alcohol stored in the storage vats is essentially for the 
purpose of sale and there is no dispute that the appellants manufacture 
and store alcohol in storage vats for the purpose of sale, and the officers 
of the Excise Department measure storage vats as prescribed by Rule 
7 51 of the Excise Manual, Volume I. Since the volume of the storage 
G 
vats is measured by the officers of the Excise Department, the provi-
sions of the Act for the purpose of sale would be applicable to the 
storage vats also. [380F-G f . 
By Notification dated 19.8.1961 the provis

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