JUDGMENT C.S.P. Singh, J. - These petitions are inter connected and may be conveniently disposed of by a single judgment. The facts are similar. 2. The petitioner company is a licensed distillary. The process of manufacture of spirit is as hereinafter described. 3. From the distillation plant, the spirit is transmitted by pipes to the receiving vat. Thereafter, it goes to the storage vat. Subsequently, it is piped to the reduction and blending vats. After spirit has been reduced and blended it is piped to the issue vats. The petitioner have a bottling bounded warehouse and the spirit in piped to the bottling tank from the issue vats. It is common ground that the entire operation is checked by the officers of Excise Department. The spirit that is collected in the issue vat is measured and gauged and its strength determined by officers of Excise Department. When the spirit in receiving in the bottling tank, it is again measured. During the transmission of the spirit from the distillation plant to the issue vats through pipes, a certain amount of wastage occurs for which the petitioner are granted an allowance under the rules. During the process of piping, the finished product, from the issue vats to the bottling tank, there is no shortfall in the quantity of the spirit, which is not attributable to any act on the part of the petitioner. After the spirit is received in the bottling tank, it is bottled and issued for sale. The dispute has arisen between the parties as to the chargeability of excise duty on the shortfall in the spirit received in the bottling tank. The petitioner claim that it is a transit loss, and they are entitled to a reduction in the excise duty in accordance with paragraph 814 of the Excise Manual. It has also been contended that under the scheme of the U.P. Excise Act and the Rules and the practise adopted by the Excise Department, excise duty is chargeable only on issue of the spirit and not on the quantity manufactured. 4. We will consider the question as to whether the petitioners are entitled to a reduction in the excise duty under paragraph 814 of the Excise Manual. When the spirit is piped from the issue vat to the bottling tank, a pass in Form P.D. 25 is issued under paragraph 787 of the Excise Manual. 4. We will consider the question as to whether the petitioners are entitled to a reduction in the excise duty under paragraph 814 of the Excise Manual. When the spirit is piped from the issue vat to the bottling tank, a pass in Form P.D. 25 is issued under paragraph 787 of the Excise Manual. This paragraph runs as under :- "No spirit shall be removed except under a pass granted by the officer empowered in this behalf." 5. In Form P.D. 25, the following details have to be entered : 1. Name of consigner ; 2. Name of consignee ; 3. Name of place to which issued ; 4. Description of spirit; 5. Number and date of permit (if any). 6. On the reverse side of this pass, the weight of cask containing spirit, their contents in bulk gallons and their strength has to be mentioned, both at the issue point and at the point of receipt. Although this form does not appear to be appropriate as the petitioner sends the spirit to its own bottling plant, the Excise Department has been following this practise all through. We may now extract the relevant portion of paragraph 814 of Excise Manual :- "814. An allowance will be made for the actual loss is transit, by leakage, evaporation or other unavoidable cause, of spirit transported or exported under bond. The allowance is subject to the following maximum limits : For Wooden Casks Per cent For a journey of not greater duration than 2 days..................... 2 For a journey of duration exceeding two but not exceeding nine days..................... 3 For a journey of duration exceeding nine but not exceeding eighteen days ..................... 4 For a journey of duration exceeding eighteen day..................... 5 For Metal Vessels For a journey of not greater duration than nine days..................... 1 For a journey of duration exceeding nine days..................... 11/2 The allowance to be made under this Rule will be determined by deducing from the quantity of spirit despatched from the distillary the quantity received at the place of destination both quantities being stated in terms of London proof. The allowance will be calculated on the quantity contained in each cask or other receptable comprised in a consignment." 7. 11/2 The allowance to be made under this Rule will be determined by deducing from the quantity of spirit despatched from the distillary the quantity received at the place of destination both quantities being stated in terms of London proof. The allowance will be calculated on the quantity contained in each cask or other receptable comprised in a consignment." 7. It will be seen that the amount of loss in transit by leakage, evaporation and other unavoidable causes of spirit, transported or exported under bond (the present spirit is issued to the bottling plant under bond) is dependent on the duration of the journey and on the fact that it is contained either in wooden casks or metal vessel, Metal Pipe lines which connected the issue vat to the bottling tank cannot be described as wooden casks. They would, however, undoubtedly be metal vessels. However, on the phraseology used in paragraph 814 of the Excise Manual it is difficult to see how loss in piping would come under this provision, as it has to be calculated on the quantity contained in the receptacle comprised in a consignment. It is not possible to hold that the metal pipe line used for piping comprise a consignment as contemplated by this provision. This provision, with the advancement of technology where spirit is transferred to the bottling, plant by pipe instead of being transferred by wooden casks or any metal vessels in separate consignments, seems to have become outmoded, and instead of granting concession for advanced technology, acts as a deterrent, for it is not disputed that piping loss is less than l% and is thus within permissible limits. Be that as it may, transit loss can be allowed only in case the matter falls within the four corners of paragraph 814, and as such it is not possible to apply paragraph 814 in terms, the petitioner's case. We are unable to hold that the petitioners are entitled to any reduction in the excise duty under paragraph 814 of the Excise Manual. 8. We will now examine the question as to whether under the U.P. Excise Act and the scheme thereunder, excise duty to chargeable at the point of manufacture or at the point of issue. We are unable to hold that the petitioners are entitled to any reduction in the excise duty under paragraph 814 of the Excise Manual. 8. We will now examine the question as to whether under the U.P. Excise Act and the scheme thereunder, excise duty to chargeable at the point of manufacture or at the point of issue. Section 28 of the Act is the charging section under U.P. Excise Act and runs as under :- "28.(1) An excise duty or a contervailing duty, as the case may be at such rate or rates as the State Government shall direct may be imposed either generally or for any notified local area on any excisable article : (a) imported in accordance with the provisions of section 12 ; or (b) exported in accordance with the provisions of section 13 ; or (c) transported ; or (d) manufactured, cultivated or collected under any licence granted under section 17 ; or (e) manufactured in any distillery established, or any distillery or brewery licensed under section 18 : Provided as follows : 'duty shall not be so imposed on any article which has been imported into index India and was liable on such importation to duty under the Indian Tariff Act, 1894, or the Sea Customs Act, 1878.' Explanation. - Duty may be imposed under this section at different rates according to the place to which any excisable article is to be removed for consumption or according to the varying strengths and quality of such article. (2)............ (3) Such duty shall not exceed the maximum as provided hereinafter : (e) Excise duty on excisable article manufactured in any distillery established, or any distillery or brewery licensed, under section 18. - Item No. Description of excisable article Maximum rate of duty 1 2 3 1. Country Liquor (excepting tari and other fermented alcoholic beverages). Rs. 20 per litre. 2. Liquor manufactured in India and sophisticated or coloured so as to resemble in flavour or colour liquor imported into India, and rectified spirit. (a) Alo, beer, porter, cider and other fermented liquors 2 per litre. (b) Perfumed spirit (other than medicinal and toilet preparations). 15 per litre. (c) wines. 8 per litre. (d) Liquors, cordials, mixtures and other preparation containing spirit not otherwise specified (other than drugs and medicines). (a) Alo, beer, porter, cider and other fermented liquors 2 per litre. (b) Perfumed spirit (other than medicinal and toilet preparations). 15 per litre. (c) wines. 8 per litre. (d) Liquors, cordials, mixtures and other preparation containing spirit not otherwise specified (other than drugs and medicines). 70 per litre (e) brandy, gin, whisky, rum, rectified spirit and other sorts of spirit not otherwise specified. 60 per litre of alcohol. 9. A perusal of this provision above that excise duty so far as the petitioner is concerned could be charged either under clause (c) or clause (a) of section 28. It is settled that it is a single point duty i.e. if it is charged at the stage of manufacture or at the stage of transport, it cannot be charged at both the points (See The Deputy Commissioner of Excise, Bangalore and another v. Messrs P. & Co. Ltd., Civil Appeal No. 93 of 1965 decided by the S.C. on 26-9-1957. Further, the duty is essentially one on the production or manufacture of goods, although it may for administrative convenience be imposed at stages subsequent to the manufacture or production See Modewell & Co. Ltd. v. Commercial Tax Officer, Hyderabad, A.I.R. 1977 S.C. 1459 and A.B. Abdul Kadir v. State of Kerala, A.I.R. 1976 S.C. 182. Now, section 28 imposes excise duty inter alia on transport or manufacture. The explanation indicates that the rates of excise duty can be varied according to the place to which excisable article is transported for consumption. This indicates that the ultimate duty has to be worked out with reference to the place where it is transported for consumption, provided of course that the State Government adopts such a procedure. We have already noticed section 28 (3) which sets out a maximum rate of duty for liquor manufactured in the State. Let us now see the manner in which the duty is levied in the State. This has been provided for in section 29 of the Act. The relevant part of section 29 runs as under : "29. We have already noticed section 28 (3) which sets out a maximum rate of duty for liquor manufactured in the State. Let us now see the manner in which the duty is levied in the State. This has been provided for in section 29 of the Act. The relevant part of section 29 runs as under : "29. Subject to such rules as the Excise Commissioner may prescribe to regulate the time, place and manner of payment, such duty may be levied in one or more of following ways as the State Government may by Notification direct : (e) in the case of spirit or beer manufactured in any distillery established or any distillery or brewery licensed under section 18 :- (i) by a rate charged upon the quantity produced or issued from the distillery or brewery as the case may be, or issued from a warehouse established or licensed under section 18 (d)." 10. Section 29 (e) (i) of the Act as is apparent, is equivocal in that the rate is to be fixed upon either the quantity produced or issued from the distillery or brewery. Thus this provision also does not indicate as to whether the rate is fixed on the quantity produced or on the quantity issued. Our attention has been drawn to Notifications dated 17-7-1959 and 1-10-1959, which have except for the rate of duty, remained amended in its essential. The relevant parts of the Notification runs :- "1. Duty is imposed on foreign liquor manufactured in India as defined in notification no. 589/XIII-44 dated December 11, 1930, under section 4 whether imported or manufactured in a distillery or brewery in Uttar Pradesh, at the rates specified below : 1. Alo, beer, porter, cider and other fomented liquors : (a) In barrels or other containers containing 262/3 oz. or more per imperial gallon or 6 quart bottles. Rs. 1.50 (b) In bottles containing less than 262/3 oz. but not less than 20 oz. per bottle. Re. 0.25 (c) In bottles containing less than 131/3 oz. but not less than 10 oz. per bottle. Re. 0.12 (d) In bottle containing less than 61/3 oz. but not less than 5 oz. per bottle. Re. 66 3. Liquors, cordials, mixtures and other preparations containing spirit (other than drugs and medicines) - (a) If entered in such a manner as to indicate that the strength is not to be tested. per bottle. Re. 0.12 (d) In bottle containing less than 61/3 oz. but not less than 5 oz. per bottle. Re. 66 3. Liquors, cordials, mixtures and other preparations containing spirit (other than drugs and medicines) - (a) If entered in such a manner as to indicate that the strength is not to be tested. Per imperial or 6 quart bottles According to the traffic rate (b) If tested Per imperial gallon or quart bottles of strength of London proof Ditto 4. (a) All other sorts of spirit except - (i) Denatured spirit Per imperial gallon or 6 quart bottles of the strength of London proof 65.00 (ii) Spiriteous preparations and (iii) Rums issued to Indian troops (b) Rums issued to Indian troops Ditto 27.00 Duty is in all cases payable on/or before issue from the brewery, distillery or bonded warehouse concerned save in the case of issues under a bond." 11. This Notification clearly indicates that so far as rum issued to Indian Troops are concerned that is chargeable at a lower rate. We may once again turn to paragraph 814 of the Excise Manual for resolving the question as to whether duty is payable at the point of issue or at the point of manufacture. The fact that an allowance is given for transit loss indicates that so far as this State is concerned, quantification of duty takes place after the excisable article has at least been issued or reaches its destination, for if that was not so, the question of allowing any transit loss for calculation of duty would not arise, as the duty would become payable as source the excisable commodity had been manufactured. Paragraph 813 of the Excise Manual also points to the same result. Under this provision, wastage allowance has been allowed. This provision allows deduction for different kinds of spirit store in a distillery. The question of giving wastage allowance for case duty were payable on manufacture, would then not at all arise. Apart from those considerations, it is clear from the affidavit of Sri P.B. Chhiber, that Excise Department has been merging duty at the point of issue of the spirit from the petitioner. He has filed a certificate from the Excise Inspector showing that an amount of Rs. 4,03,38,472/19 was charged by the Excise Department on the quantity of bottled spirit issued in U.P. by the petitioner. He has filed a certificate from the Excise Inspector showing that an amount of Rs. 4,03,38,472/19 was charged by the Excise Department on the quantity of bottled spirit issued in U.P. by the petitioner. This certificate has not been contradicted on behalf of the respondents. A perusal of the provisions of the Excise Manual and the various Notifications issued, as also the practise by the Department clearly indicates that excise duty is quantified and collected at the point of issue of the spirit, and not at the point of manufacture. Thus the demand of excise duty on the shortage of spirit received at the bottling tank cannot be sustained. 12. We accordingly allow the petition and quash the impugned orders of the Excise Commissioner demanding duty in respect of shortage found in the bottling vat of the petitioner.