Mcdowell And Co., Ltd. vs The Sales Tax Officer, Sherthallay on 22 September, 1971
It is, however, submitted by the learned counsel for the petitioners that, when rule 29 of the Andhra Pradesh Brewery Rules, 1970, was not amended as in the case of A.P. Distillery Rules, fastening the liability on the licensee of the brewery to pay the excise duty, then, on the basis of the decision of the Supreme Court in McDowell & Co. Ltd. v. Commercial Tax Officer it should be held that the excise duty paid by a purchaser directly to the excise authority at the time of removal of the goods from the brewery would not form part of the turnover of the manufacturer. We are unable to accept this contention in view of the two later decisions of the Supreme Court wherein it had been categorically laid down that the primary responsibility to pay excise duty was on the manufacturer and though it was paid directly to the Government by a purchaser, still it formed part of the turnover of the manufacturer."