Lion Brewery (Ceylon) PLC vs Mr. S.A.C.W. Jayathilake – CA WRIT NO.787/2008-2013

The case between Lion Brewery (Ceylon) PLC, Harihaan Selvanathan, and others (Petitioners) and S.A.C.W. Jayathilake (Director General of Excise), E.M.D.B. Ekanayake (Director–Excise Duty), and the Department of Sri Lanka Customs (Respondents), addressed the issue of the proper basis for calculating excise duty on beer under the Excise (Special Provisions) Act No.13 of 1989—specifically, whether “ex-factory price” or “wholesale price” constitutes the “normal price” for duty computation. It was determined that the normal price must be the “wholesale price” charged by related persons (distributors) to independent parties, and not the “ex-factory price” at the point of manufacture. The findings established that the Department’s method of assessment and the liability imposed were legally valid,