Judgment

SHAH, J.: - Under the Mysore Excise Act, 1901, the Government of, the State was authorised to grant exclusive privilege of selling by retail Indian made liquor on such conditions and for such period as the Government deemed fit, and to levy duty on manufacture and sale of alcoholic liquor. In exercise of that power the Government of Mysore framed rules regulating sale of "excise privileges". In the Note to Rule 23 in respect of toddy, "tree-tax", "treatment" and "shop-rent" were chargeable at the rate of 9 pies per rupee.

2. Under the Act the exclusive privilege of retail vending of toddy in different areas was sold by auction. Every licencee had to secure toddy by tapping toddy-yielding trees either in Government groves assigned to his shops or trees of private ownership. The licencee was required to pay to the State "tree-tax" at the prescribed rates for the number of trees tapped by him. When he tapped trees belonging to the Government he had to pay, in addition, "tree-rent" to the State. Consideration paid by the licencee to the State for the exclusive privilege of retail vending of toddy, or Arrack or beer was popularly known as "shop-rent". In the notifications invitin