Lion Brewery (Ceylon) PLC vs. S.A.C.S.W. Jayatilleke, Director-General of Excise – SC/APPEAL/206/2014-2024

In the case between Lion Brewery (Ceylon) PLC and associated appellants and Mr. S.A.C.S.W. Jayatilleke (Director-General of Excise) and other respondents, the Supreme Court addressed the appropriate legal method for calculating excise duty on beer, specifically whether this should be derived from the “ex-factory price” or the “wholesale price.” Central to the dispute was the interpretation and application of sections 7 and 9 of the Excise (Special Provisions) Act, and whether distributors constituted “related persons” under the Act. The findings established that the distributors are “related persons,” that the ex-factory price does not represent the “normal price,” and that claims regarding complimentary beer are prescribed. The majority of the appellant’s claims were rejected, with partia