Judgment ( 1 ) IN the instant case, the demand from the appellant as per the order of the Excise Commissioner was as follows: "hence a demand notice is hereby issued to you to pay excise duty for an amount of Rs 1,59,15,376. 40 for the loss of rectified spirit amounting to 6,18,842 litres (10,33,466 PLs) calculated at the rate of Rs 15. 40 PL. You may note that this does not in any way prevent the commissioner from initiating any action to cancel your licence. " ( 2 ) IT is settled by the decision of this Court in Synthetics and Chemicals ltd. v. State of U. P. that the State Legislature has no jurisdiction to levy any excise duty on rectified spirit. The State can levy excise duty only on potable liquor fit for human consumption and as rectified spirit does not fall under that category the State Legislature cannot impose any excise duty. The decision in Synthetics and Chemicals Ltd. v. State of U. P. has been followed in State of U. P. v. Modi Distillery where certain wastage of ethyl alcohol was sought to be taxed. This Court following the decision in Synthetics and chemicals Ltd. came to the conclusion that this cannot be done. ( 3 ) IN the present case also, the aforequoted passage from the Excise commissioners order indicates that the duty is sought to be levied on the loss of rectified spirit amounting to 6,18,842 litres. We have already observed that no duty can be levied by the State on the rectified spirit and, therefore, the impugned order of the Commissioner of Excise is set aside. This appeal is allowed accordingly. ( 4 ) NO order as to costs. Civil Appeals Nos. 4381 of 1986, 454 of 1987 and 1832 of 1994 ( 5 ) FOR the reasons stated in our order in Civil Appeal No. 4355 of 1985, these appeals are also allowed and the decision of the Excise Commissioner is set aside.