JUDGMENT

Rajendra Babu, J.-For the excise year 1992-93 the State had monopoly in the matter of supply of arrack. The privilege of vending the arrack was obtained through a licence and the licensees got their supply only through the State owned or controlled distilleries. Such licensees were not allowed to import any arrack or rectified spirit from outside the State. In the excise year 1993-94 commencing from April 1, 1993 the State modified the policy in this regard by G.O. (MS) No. 18/93/TD dated February 8, 1993. The modifications effected in the policy are as follows :-

 (a) Abkari shops were to be auctioned groupwise.

 (b) In the matter of supply of rectified spirit, the existing system was to be discontinued, instead permits will be given to the contractors (licensees) to bring "a designated quantum of rectified spirit determined in relation to the auction amount."

 (c) The Board of Revenue was to ensure, before issue of permits, that adequate arrangements are made for the timely collection of duties, taxes, etc.