S. B. SINHA, C. J.

( 1 ) VIRES of sub-rule (9) of Rule 25 of the andhra Pradesh Indian Liquor and Foreign liquor Rules, 1970 (hereinafter referred to as the Rules ) is in question in this batch of writ petitions. FACTS:

( 2 ) THE petitioners are granted IL 24 licence for retail sale of liquor for the lease year 2000-2001. Allegedly the licence was effective from 17-5-2000 to 31-3-2001. By reason of G. O. Ms. No. 190, Revenue (Ex. III) Department, dated 24-3-1998, sub-rule (9) has been inserted in Rule 25 of the rules which is to the following effect: the annual licence fee for the licences in Form IL 24 referred to in Rule 23 shall be amended from time to time at the rates as shown in the schedule appended to these Rules. The annual licence fee for a lease year shall be paid before the commencement of the lease year to which it relates in one lump-sum or in three equal instalments or in a manner as notified from time to time. Where the licence is issued before the 31st May of the lease year, the first instalment i. e. , l/3rd of the annual licence fee shall be paid into the government Treasury through a. . . . . . . SUBMISSIONS:

( 3 ) THE bone of contention of the learned counsel for the petitioners is that having regard to the scope and object of the Act, as no person can carry on any business save and except in terms of licence granted under the said Act, collection of licence fee for the period during which the licence was not operative, must be held to be illegal. The learned Counsel would contend that collection of such licence fee is arbitrary particularly having regard to the fact that a licence is granted for a period less than 12 months. The learned Counsel would submit that having regard to the fact that persons similarly situated viz. , those who had received the licence earlier would be operating their shops for the self-same period for the same amount, the impugned order must be held to be discriminatory.

( 4 ) THE learned Counsel would further submit that such reduction in licence fee is permissible and in support of the said contention strong reliance has been placed on Govt. of A. P. v. A. Sudhakar. The learned counsel would contend that levy for the period for which no business could be transacted must be held to be ultra vires.

( 5 ) THE learned Government Pleader Mr. Chandraiah, on the other hand, would submit that having regard to the scope and object of the Act, the impugned rule is intra vires. SCHEME OF THE ACT:

( 6 ) THE Andhra Pradesh Excise Act, 1968 (for short the Act ) has been enacted to consolidate and amend the law relating to the production, manufacture, possession, transport, purchase and sale of intoxicating liquor and drugs, the levy of duties of excise and countervailing, duties on alcoholic liquors for human consumption and opium, indian hemp and other narcotic drugs and narcotics and to provide for matters connected therewith in the State of Andhra pradesh. form has been defined in rule 2 (d) of the Rules to mean a form appended to these Rules and lease year has been defined in Rule 2 (ee) of the Rules to mean a period of twelve months beginning from the first day of April of the year and ending with the 31st March of the following year. Rules 24 and 25 of the Rules read thus:24. Period of the Licence:- Every licence other than the occasional licence in Form IL 22 or Special licence shall be valid for a lease year coming from the 1st April, ending with 31st March of the succeeding year, subject to payment of annual licence fee in one lumpsum: provided that the licences issued on or after the 1st April, shall be valid upto the end of 31st March of the succeeding year. Provided further that the lease of all the licences issued under the Andhra pradesh Indian Liquor and Foreign liquor Rules, 1970 and subsisting as on the 31st March, 2000 is hereby extended upto the 10th April, 2000. 25. Licence fees:- (1) The annual licence fee for each of the licences except IL 17 and IL 24 referred to in

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