JUDGMENT G.C. Mathur, J. - The main question which arises for consideration in this appeal is whether excise duty can be levied on rectified spirit under the U. P. Excise Act, 1910. 2. The appellants manufactured rectified spirit at their Factory at Daurala (U. P.). The rectified spirit was stored in bonded go downs. The appellants sent, in the year 1964, certain consignments of rectified spirit, under bond, to the Punjab Distilling Industries Ltd., Khasa, district Amritsar (Punjab). This was done after payment of export duty as required by Rule 631 of the Rules framed under the Act. On checking by the Punjab Excise Authorities it was found that in 7 cases the wastage was in excess of the maximum permissible limits. On this excess amount of wastage of rectified spirit excise duty was levied under Rule 814 at the highest rate. Seven demand notices were issued by the Excise Commissioner to the appellants for recovery of this duty. The demand notices are Annexures 1 to 7 to the writ petition. The appellants filed a revision before the State Government against the levy of excise duty, but the revision was rejected. The appellants thereupon filed a writ petition challenging the demand notices on various grounds. None of the grounds found favour with the learned Single Judge, who heard the writ petition, and he dismissed the same. Against the judgment of the learned Single Judge the appellants filed this appeal. 3. In support of the appeal two grounds were urged before us, namely : - (i) that rectified spirit is not an excisable article under the U. P. Excise Act, 1910; and (ii) that no excise duty can lawfully be levied on wastage. Having heard counsel for the parties, we have come to the conclusion that the appeal must succeed on the first ground. We, therefore, do not propose to deal with the second ground. 4. Sec. 28 of the Act empowers the State Government to impose excise duty on an excisable article. Sec. 3 (22a) defines excisable article to mean : - "(a) any alcoholic liquor for human consumption or (b) any intoxicating drug." There is no dispute that rectified spirit is an intoxicating liquor. The question for consideration is whether it is "for human consumption." Now, what does the expression "for human consumption" mean. The learned Standing Counsel has suggested that it means "capable of human consumption". The question for consideration is whether it is "for human consumption." Now, what does the expression "for human consumption" mean. The learned Standing Counsel has suggested that it means "capable of human consumption". The learned Single Judge has held:- "I, therefore, conclude that rectified spirit is an `excisable article' as `alcoholic liquor' which could be wholly used for drinking by human belongs albeit after subjection to further process of manufacture and dilution or mixture with other liquids." With respect, we are unable to agree with this view. In our opinion, the expression "for human consumption" means "intended or meant for human consumption" at the stage of manufacture. 5. We have, therefore, to see whether rectified spirit as manufactured by the appellants was intended or meant for human consumption. In Appendix `H' Volume II of the U.P. Excise Manual printed at page 152 the specifications for rectified spirit are set out. It lays down that there should be two grades of rectified spirit, namely, grade A for use as a re-agent for pharmaceutical and medicinal purposes and for the production of potable alcoholic liquors and grade B for other industrial uses. This clearly shows that rectified spirit can be manufactured only in two grades; neither of which is meant directly for human consumption. It, thus, appears that rectified spirit is not manufactured for direct human consumption. 6. Rectified spirit is, as such, not normally used for human consumption. It is not sold in the market for such a purpose. The licensees who normally sell alcoholic liquors for human consumption do not and cannot sell rectified spirit. Under Rule 659 rectified spirit can only be sold by approved Chemists or Druggists who have obtained a license in Form F.L. 14. Under this Rule the licensee cannot sell rectified spirit for other than bona fide medical, industrial and scientific purposes. It, thus, appears that rectified, spirit is not to be made available to the common man for human consumption. The mere fact that some misguided persons, after obtaining rectified spirit surreptitiously, drink it after diluting it with water will not alter the fact that rectified spirit is not an article meant for human consumption. 7. It, thus, appears that rectified, spirit is not to be made available to the common man for human consumption. The mere fact that some misguided persons, after obtaining rectified spirit surreptitiously, drink it after diluting it with water will not alter the fact that rectified spirit is not an article meant for human consumption. 7. It is true that rectified spirit is capable of being converted into potable liquors, which are fit for human consumption, but, in our opinion, the capability of conversion into "alcoholic liquors for human consumption" will not make the rectified spirit itself an "alcoholic liquor for human consumption". When it is so converted, then the converted material will be the "alcoholic liquor for human consumption" and will be liable to excise duty at the stage of conversion. Before can version it cannot be said to be an "alcoholic liquor for human consumption". 8. In Suneeta Laboratories v. State of M. P., 1972 T.L.R. 2058 a Division Bench of Madhya Pradesh High Court has also taken the view that rectified spirit is not an "alcoholic liquor for human consumption", and that the State Legislature has no right to impose an excise duty thereon. 9. In our opinion, rectified spirit is not an "alcoholic liquor for human consumption"' and is not an excisable article under the U. P. Excise Act. No excise duty could be legally imposed upon rectified spirit. The duty imposed by the Commissioner of Excise on the rectified spirit produced and exported by the appellants was without the authority of law. The demand notices issued by the Excise Commissioner are liable to be quashed. 10. The appeal is, accordingly, allowed. The judgment of the learned Single Judge is set aside, the writ petition is allowed and the seven demand notices Annexures 1 to 7 to the writ petition are quashed. In case the excise duty has been recovered on the basis of these demand notices, the same shall be refunded to the appellants forthwith. The appellants are entitled to their costs in this appeal as well as in the writ petition.