1982 Supreme(SC) 119
SUPREME COURT OF INDIA
Y.V. CHANDRACHUD, CJI., V.D. TULZAPURKAR, D.A. DESAI, O. CHINNAPPA REDDY AND BAHARUL SLAM, JJ.
Trade links Limited, New Delhi and another etc. etc., Petitioners
Versus
State of U.P. and another etc. etc., Respondents.
Writ Petns. Nos. 528-529, 1645, 288, 293, 362, 363, 374, 388, 404-406, 510, 512-14, 644-46, 647, 663-65, 707, 710, 720-22, 745,793, 1037 of 1979, 341-43, 344-47, 5257, 519, 5293, 3531-35, 4322 of 1980, 4824, 4925, 5246, 3236,
963, 3472-74, 3415-17, 3420, 1363-65, 1327-28, 1337-41, 4101-2, 5326, 4949-50 of 1981 and 311 of 1982
Decided on 7-5-1982.
Asha Rani Jain, ASHOK GROVER, B.P.MAHESHVARI, D.N.Mishra, G.L.SANGHI, G.N.DIKSHIT, H.R.BHARDWAJ, K.R.NAGARAJA, KAMINI JAISWAL, L.K.PANDEY, L.M.SINGHVI, L.M.SINHA, P.KRISHNA RAO, Pravir Chaudhary, RANI CHHABRA, Ravindra Narayan, S.C.BUDHWAR, S.C.MAHESHVARI, S.N.KACKAR, Suresh Sethi, V.N.KOURA
Headnote:
Excise Act, 1910 - Principal Act of 1910 - Articles 32, 14, 19 and 31 – Sections Ss. 1 (2), 3, 5, 24A, 31, 30 (2), 39, 41 - Writ petitions - Grant of exclusive privilege - It may be stated that aforesaid challenge Ordinance and concerned amended provisions - Excise Act 1910 has been made solely with a view to avoid payment of "assessed fee" which respondents are seeking to recover from petitioners in addition to "fixed fee" (auction money) as and by way of consideration for grant of licences in Form for wholesale vend of beer and Indian Made Foreign Liquor -It was not disputed before us that grant of exclusive privilege of manufacture supply or sale by wholesale or by retail of liquor was always governed by provisions of Principal Act of 1910 and Rules framed thereunder and that licences for wholesale vend of beer and Indian Made Foreign Liquor were granted in Form FL- which contained terms and conditions on which sales by wholesale of said commodities could be effected by grantees thereof - It appears that prior these licences were not settled under any auction system but were renewable from year to year and licence fee was based on quantity of beer and Indian Made Foreign Liquor actually sold from concerned shop and was assessed and charged per quart bottle on spirits and - per quart bottle on beers - In exercise of power so conferred upon him under amended cl - (c) of S - 41 Excise Commissioner with previous sanction of State Government framed Rules called (Wholesale and Retail Vend of Foreign Liquor) (2nd Amendment) Rules 1976 by issing Notification Licencel which were brought into force with effect from of publication in Gazette namely by this Notification existing Rules 639 641 and 642 as appearing in Excise Manual Vol - court (1962 Edn - ) were amended Rule 639 (2) as amended provides that - Licences in form shall be settled by public auction" while Rule 641 as amended provides that " fee for a licence in form shall be amount of money accepted at auction of licence as fixed fee together with an assessed fee charged on basis of scales of surcharge fee prescribed in next paragraph following and Rule 642 as amended runs thus – Held, last contention is merely required to be stated to be rejected - In support of that contention reliance was placed on newly inserted condition in licence which states that assessed fee at such scales of surcharge fee as may be prescribed by Government shall also be payable by licensee while actually scales of surcharge fee have been prescribed by Excise Commissioner by framing amended Rule 642 in exercise of powers conferred upon him by cl - (c) of S - 41 of Principal Act - Counsel urged that scales of surcharge fee ought to have been prescribed by Government - In this connection we might refer to S - 24B (c) which expressly declares that " Excise Commissioner as head of Excise Department of State shall be deemed while determining or realising such fee to act for and on behalf of State Government - No other point was raised - It is therefore clear that levy and recovery of "assessed fee" over and above fixed fee by respondents for granting licences to all petitioners would be legal and valid under Principal Act of 1910 as amended by Act 5 of 1976 and amended Rules framed thereunder and all petitions are liable to be dismissed - Petitions dismissed
JUDGMENT
TULZAPURKAR, J. :— There is no substance in this group of writ petitions filed under Art 32 of the Constitution whereby the petitioners, who carry on business inter alia, of the wholesale vend of beer and Indian Made Foreign Liquor at various places in the State of U. P. on the strength of licences granted to them in Form FL-2 under the U. P., Excise Act, 1910, have challenged the constitutional validity of Ss. 1 (2), 3 and 5 of U. P. Excise (Amendment) Ordinance No. 4 of 1979 as also the constitutional validity of Ss. 1 (2), 3 and 5 of U. P. Excise (Amendment) Act No, 13 of 1979 (which replaced the said Ordinance No. 4 of 1979) as being violative of their fundamental rights under Arts. 14, 19 and 31 of the Constitution; the petitioners have also sought a declaration that S. 30 (2), Proviso to cl. (c) of S. 41. and Explanations I and II to cl. (c) of Sec. 41 of the U. P. Excise Act 1910 as amended by Ss. 3 and 5 of the said Ordinance No. 4 of 1979 as well as by Ss. 9 and 5 of the said Act No. 13 of 1979 and the provisions of sub-sec. (2) of S. 1 of the said Ordinance (No. 4 of 1979) as well as of the said Act (No. 13 of 1979) are ultra vires the Constitution and have prayed for the issuance of an appropriate writ, order or direction restraining the respondents (the State of U. P., the Excise Commissioner and other officers) either directly or through their agents, servants or otherwise from giving effect to the amended provision.
2. It may be stated that the aforesaid challenge to the U. P. Ordinance No. 4 of 1979, the U. P. Act No. 13 of 1979 and the concerned amended provisions of the U. P. Excise Act, 1910 has been made solely with a view to avoid the payment of the "assessed fee" which the respondents are seeking to recover from the petitioners in addition to the "fixed fee" (auction money) as and by way of consideration for the grant of licences in Form FL-2 for the wholesale vend of beer and Indian Made Foreign Liquor. However, as it became clear during the hearing that even without the amendments effected in the U. P. Excise Act, 1910 (being the Principal Act) by the said Ordinance No. 4 of 1979 and by said Act No. 13 of 1979 the "assessed fee" in addition to the "fixed fee" (auction money) could be and was being recovered under the Principal Act of 1910 as amended by the U. P. Amending (Reenactment and Validation) Act 5 of 1976 and the Rules framed thereunder, the aforesaid challenge was given up and no arguments in support thereof were at all advanced by any of the counsel for the petitioners and the contentions centred round the question whether such "assessed fee" in addition to the "fixed fee" (auction money) could be levied and recovered under the Principal Act of 1910 as amended by Act 5 of 1976.
3. It was not disputed before us that the grant of exclusive privilege of manufacture, supply or sale by wholesale or by retail of liquor was always governed by the provisions of the Principal Act of 1910 and the Rules framed thereunder and that licences for wholesale vend of beer and Indian Made Foreign Liquor were granted in Form FL-2 which contained the terms and conditions on which sales by wholesale of the said commodities could be effected by the grantees thereof. It appears that prior to April 1976 these FL-2 licences were not settled under any auction system but were renewable from year to year and the licence fee was based on the quantity of beer and Indian Made Foreign Liquor actually sold from the concerned shop and was assessed and charged at the rate of Rs. 5/- per quart bottle on spirits and 60 p. per quart bottle on beers. But from April 1976 auction system was introduced whereunder FL-2 licences were auctioned under the provisions of paragraph 373 of the U. P. Excise Manual Vol. I and "fixed fee" being the highest bid (auction money) accepted at such auction came to be charged for the grant of FL-2 licences and this system was introduced on the strength of the amendments that were made in the Prin