The power of excise authorities to suspend licenses under Section 31(1) of the Andhra Pradesh Excise Act, 1968 is limited to cases where there is a breach of the terms and conditions of the license, and does not extend to cases where an investigation is pending.

S. PARVATHA RAO, J.

( 1 ) THE petitioner questions the order of the 2nd respondent herein in his RC. No. 2770/94/a4 dated 2-11-1994 suspending the licence of his shop under the name and style of Sri Devi Wines, Attili in Form f. L. 24 bearing Licence No. 67/92-97 "under section 31 (1) of the Andhra Pradesh Excise act with immediate effect pending further investigation". The short question is whether there can be such a suspension of the licence under Section 31 (1) of the Andhra Pradesh excise Act, 1968 (hereinafter referred to as the Act ) "pending further investigation".

( 2 ) NOTICE before admission was ordered on 15-11-1994 observing as follows:-"what was found when the petitioner s shop was inspected on 17-10-1994 was that the petitioner purchased considerable stock of liquor from Messers Sri laxmi Wines, Penumantra. No non-duty paid stock was found in the premises of the shop. As per the conditions of the licence in form F. L. 24 the petitioner should purchase his stocks for sale only from IML Depot of A. P. B. C. L. Limited, chagallu only. It is stated that, in the circumstances, the Excise Sub-Inspector, attili, registered a case in Crime No. 1/94-95 of Attili range under Section 36 (b) of the Andhra Pradesh Excise Act, 1968 (for short the Act ). On that, the 2nd respondent, in his order in R. C. No. 2770/94/a. 4 dated 2-11-1994, suspended the licence of the petitioner pending further investigation , observing as follows:- "thus the licensee of M/s. Sri Sri Devi wines, F. L. 24, Attili has violated the rules and conditions of the A. P. F. L. and i. L. Rules, 1970, The licensee has wilfully violated licence conditions and rules and indulged in malpractices under section 36 (b) of A. P. Excise Act . The learned counsel for the petitioner contends that the 2nd respondent had already come to a conclusion and had given a finding that the petitioner wilfully violated the licence conditions and that, therefore, the order of suspension amounts to punishment and that inasmuch as the said order was made without notice or opportunity to the petitioner it is violative of principles of natural justice, apart from violating the Statutory requirements under the proviso to sub Section (1) of Section 31 of the Act. He also submits that, even treating it as suspension, which is intended to be pending enquiry, no enquiry had been initiated against the petitioner and merely stating pending further investigation does not mean that enquiry had been initiated and is intended to be initiated. The learned counsel for the petitioner also contends that the order of suspension in the present case is made in a routine way without in any way heeding the decision of the majority of the Full Bench in Tappers Cooperative society, Maddur, v. Superintendent of Excise, mahaboobnagar (1) 1984 (2) APUJ 1 (F. B ). He also submits that even though inspection was made on 17-10-1994, till 2-11-1994 no suspension order was made and the present is not a case of adulteration or the like. In the circumstances, prima facie I am satisfied that the impugned order of suspension does not satisfy the requirements of law. In the circumstances, the order of the 2nd respondent in his RC. No. 2770/ 94/a4 dated 2-11-1994, shall be suspended pending further orders. "the 2nd respondent herein i. e. , Excise Superintendent, eluru, West Godavari district gave his counter affidavit dated 3-12-1994. On the question of his power to suspend the petitioner s f. L. 24 licence as he did, in para 5 of his counter affidavit, he states as follows :-"it is submitted that the suspension imposed in the case is only to facilitate investigation and to prevent possible tampering with any material facts and the order of suspension is only by way of interim measure. "he has not stated which provision of the Act or the Rules made thereunder authorise him to suspend the licence of the petitioner "pending investigation". Section 31 of the Act does not provide for suspension of a licence pending

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