The requirement of obtaining a through transport permit for transporting liquor from one state to another through the State of Andhra Pradesh was not violative of Articles 301 and 304 of the Constitution as it was a regulatory measure in public interest and did not impose any unreasonable restriction on the freedom of trade, commerce, and intercourse.

S. S. M. QUADRI, J.

( 1 ) FOR over a decade steps taken by the Government to regulate the movement of vehicles transporting liquor, which pass through the State of andhra Pradesh, have been the subject matter of litigation. These steps are taken on the ground that in the guise of transporting liquor through the State of Andhra Pradesh, it is being smuggled in this State, thus causing loss of revenue to the State. Initially the Commissioner of Excise issued circular No. CR. 41i24/81/ex/g2, dated 30-8-1981 requiring the transporters to obtain transport permits from the Commissioner for that purpose. That circular was assailed in a batch of writ petitions in Brindco sales Corporation vs. Commissioner of Excise. Ramachandra Rao, J. (as he then was) allowed the writ petitions holding that none of the provisions of the Andhra Pradesh Excise Act or the Andhra Pradesh Foreign Liquor and indian Liquor Rules, 1970 empowered the State Government or the Excise commissioner to provide for obtaining a transport permit to transport liquor from one place outside the State to another place outside the State of Andhra Pradesh when the lorries have to pass through the State of andhra Pradesh. Thereafter a scheme called "through transport permit scheme" was evolved and to give effect to that scheme, the Legislature of the State amended Sections 2 (31), 11 and 12 of the Andhra Pradesh Excise act, hereinafter referred to as "the Act", and the Governor of Andhra pradesh amended Rules 3 (p), 16 (2), 17 (3) and 18 (4) of the A. P. Foreign liquor and Indian Liquor Rules, 1970 in G. O. Ms. No. 983, Rev. (Bx. III), dated 6-10-1989, hereinafter referred to as "the Rules". The abovesaid amended provisions are assailed in this batch of writ petitions as being arbitrary, impracticable and unworkable and violative of Articles 301 ana 304 of the Constitution; (for short they are referred to hereunder as "the impugned provisions of the Act and the Rules. "

( 2 ) SINCE the facts in these writ petitions arc common, I will refer to the facts given in the affidavit accompanying Writ Petition No. 790 of 1990. The petitioner-company is a manufacturer of Indian made foreign liquor and beer. The manufacturing units of the petitioner-company are in kerala, Andhra Pradesh, Goa, Bihar, Karnataka, etc. The liquor/beer manufactured in the units in the said States is transported through vehicles by road to the State of West Bengal and other northern States. In the process the transport vehicles from other States have to pass through the state of Andbra Pradesh. The Government of Andhra Pradesh introduced "through transport scheme" under which the liquor transported from one state to another State cannot pass through the State of Andhra Pradesh except under "through Transport Permit" issued by the Commissioner of excise. Due to implementation of this scheme, the petitioner is put to serious inconveniences and great loss. The petitioner, therefore, challenges the abovementioned impugned provisions of the Act and the Rules on various grounds which will be referred to presently.

( 3 ) THE respondents filed a counter-affidavit stating inter alia that yanam Port and Maha Port are parts of the Union Territory of Pondicherry separated from its main land by 600 and 1000 K. Ms. , respectively, by inter-lying areas of the State of Andhra Pradesh. To approach Yanam or Maha, one has to necessarily pass through the State of Andhra Pradesh. The excise duty on alcoholic liquor in the Union Territory of Pondicberry including yanam and Maha has always been far less than that prevailing in andhra Pradesh. The difference in the Excise duty coupled with the geographical advantage resulted in clandestinely unloading of liquor in the interlying area of Andhra Pradesh causing loss to the State s revenue. To arrest this practice and to proteot the revenues of the State, the Commissioner of Excise issued orders in Cr. No, 41124/s1/g2, dated 30-8-1981 requiring the transporters of liquor consignments to

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