LexSTATE OF UTTAR PRADESH & OTHERS versus MAWANA SUGARS LIMITED
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[2017] 10 S.C.R. 1097 STATE OF UTTAR PRADESH & OTHERS MAWANA SUGARS LIMITED (Civil Appeal No. 10610 of 2017) AUGUST 18, 2017 [ARUN MISHRA AND AMITAVA ROY, JJ.] A B Excise - Molasses Policy - Interpretation of - State Government, for the Molasses Year 2015-2016 issued "Molasses Policy'', which provided for a reser11ation of 25% of the molasses C produced to be supplied to the country liquor manufacturers as per the formula mentioned therein - According to the respondent, the reservation of 25% would apply to the balance of molasses left over after its captive consumption for its distillery - Whereas, appellallts asserted that the reservation of 25% would be on the total production of 11wlasses, to be adjusted el'entually on the basis D of the balance stock computable in terms of the formula defined in the Policy - Held: In the Policy for the Molasses Year 2015-16, mandate is for 25% reservation of the total molasses produced - Unambiguous prescript of the Policy that the reservation would be. of 25% of the molasses produced, which by no means, can be E construed to connote that such reservation had been contemplated to be only of the balance stock left over after the captive consumption of the sugar mill(s) concerned - Noticeably, the Policy co11sciously underlines that in any event thereby, the captive consumption of molasses by the sugar mills is not affected at all, so much so that if the balance stock is more than the extent of F reservation, the whole of it would apply, but if the balance stock is less than the quantity to be reserved, the reservation would work only to the extent of the balance stock and not in excess - Therefore, the plea of the respondent that the reservation is unmistakably limited to 25% of the balance stock under all situations is visibly flawed G and fallacious. Allowing the appeal, the Court HELD: 1.1 It would be apparent from the Molasses Policy . 2015-16 that for the Molasses Year 2015-16, every sugar mill, at the first place, would have to keep 25% of the molasses produced, H 1097 1098 SUPREME COURT REPORTS [2017] 10 S.C.R. A reserved and those sugar mills, whose distilleries are situated in the State, would apply the following norms of reservation: B c D (a) If the balance stuck exceeds the reserved quantity (25%), then in that case, full reservation would a11ply to them w.e.f. the commencement of the molasses year. (b) In case the balance stuck is less than the reserved c1uantity then, reservation would apply w.e.f'. the commencement of the molasses year, but would be limited to the c1uantity of' balance stock. (c) If the balance stock is nil i.e if the captive consumption of molasses exceeds the c1uantity available to them, no reservation would apply. [Para 21] [1109-E-H] 1.2 The Policy determined the balance stock as hereunder: Balance stock fur the Molasses Year 2015-16 = unreserved preliminary stock of the group of mills in the Molasses Year 2015- 16 + production in the Molasses Year 2015-16 - self-consumption of molasses in the Molasses Year 2015-16 (equivalent of self- consumption of molasses up to 31.10.2015 in the Molasses Year 2014-15). [Para 24] [1110-D] 1.3 The balance stock for the purpose of the Policy, E therefore, in essence, is the stock that would be left over after utilization of the commodity for captive consumption in the Molasses Year 2015-16 from the sum total of the unreserved preliminary produce of the same molasses year and the production thereof in the said year. The computation of balance stock though F relevant to eventually decide as to the extent of reservation that would be effective to ascertain the volume of supply to other distilleries manufacturing country-made liquor, it however does not in any way support the contention of the respondent that irrespective of the eventualities in the aforementioned clauses (a), (b) and (c), the reservation would be of 25% only of such G balance stock and not otherwise. This is in view of the unambiguous prescript of the Policy that the reservation would be of 25% of the molasses produced, which by no means, can be construed to connote that such reservation had been contemplated to be only of the balance stock left over after the H captive consumption of the sugar mill(s) concerned. Such a STATE OF UTTAR PRADESH & OTHERS v. MAWANA 1099 SUGARS LIMITED construction would be a total misreading of the Policy and would A border on p
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