Judgement

RAY, C. J.:-These appeals by certificate turn on the question as to whether the excise license granted to the appellants rendered them liable to pay the stipulated lump sum mentioned in the license.

2. These appeals relate to country liquor licenses (a) for the years 1962-63 and 1963-64; (b) for the years 1967-68 and (c) for the years 1968-69. 1969-70 and 1970-71.

3. For the years 1962-63 and 1963-64 licenses for sale of country liquor were given to contractors under a guaranteed system. There was a total guaranteed amount, Where the contractors failed to fulfil the guaranteed amount and there was a short-fall, demand notices were issued for the total short-fall .

4. For the years 1967-1968, 1968-69 and 1969-70 the liquor contractors obtained licenses for sale of country liquor at a stipulated amount of license fee under the exclusive privilege system, Where the contractors failed to pay the guaranteed amount there was a demand for a short-fall.

5. The appellants who were the liquor contractors challenged the demand for short-fall of the guaranteed amount. The liquor contractors contended that what was being demanded as short-fall amounted to levy of excise duty. The State, on the other hand, contended that what was being realized from the liquor contractors was the guaranteed amount in the licence for the exclusive privilege of selling country liquor.

6. It may be stated here that there was no levy of excise duty prior to 6 March, 1964. After the imposition of excise duty, the licenses during the year 1967-68 and thereafter were issued for a guaranteed sum under the exclusive privilege system. The State contended that what was being demanded as shortfall was the stipulated guaranteed amount which was excise revenue.

7. The licenses granted upto the, year 1967-68 contained the following principal conditions:

(1) The licensee guarantees to the Governoor of Rajasthan State that he in the year concluding on......March ..........shall receive from the Government and sell such quantity of wine of which issue price shall not be less than Rs............. (hereinafter known as the "guaranteed price" which are prevailing on......March......).

(2) The liquor shall be supplied to the licensee at the prevailing issue price, but the difference between such issuce price and the issue price calculated at the prevailing rate on 31 March ------ shall not be included in the guarantee amount.

(3) The licensee will have to pay the shortfall if any, between the price of the liquor obtained by him upto the end of any month at the issue price of 31 March........ and the amount of guarantee multiplied by the months, which have passed and divided by eleven at the godown by the tenth of the next month.

(4) In case of non-payment, the license will be cancelled and when cancelled this way, the abovementioned difference shall be recovered from security, cash deposits and remnant if any shall be recovered from the licensee and the surety jointly and severally.

8. From 1968-69 the licenses contained, inter alia the following principal conditions:-

(1) The licensee will have to deposit Rs........., as license fee under Section 24 of the Rajasthan Excise Act, 1950 for his exclusive privilege as fixed by the Excise Commissioner From it the amount of excise duty will be adjusted towards the payment of the amount for the exclusive privilege but this adjustment will be limited to the payment of the amount for the exclusive privilege. The licensee will have to deposit the aforesaid amount in 12 equal instalment and will have to deposit the monthly instalment by the 10th of the next month in Government Treasury. The fees deposited by the lincense-holder in that month in the form of the component of the issue price will be treated as excise duty under the instalment of the license-fee.

(2) If the license-holder does not deposit the instalments for any two months as laid down in the aforesaid condition within the prescribed period then the officer issuing the license wi