As per the case facts, the State of Uttar Pradesh challenged a High Court order that quashed a demand for excise duty on liquor destroyed in a fire. The High ... Court had held that no negligence could be imputed to the respondent company. The question arose whether the demand for excise duty on liquor lost in fire was authorized by law and if the respondent company remained liable despite the fire incident. Finally, the appeal was allowed, the impugned High Court orders were set aside, and the writ petition filed by the respondent company was dismissed, indicating the company's liability.