Section 31(3) of the Andhra Pradesh Excise Act, 1968, bars the refund of license fees or deposits upon cancellation or suspension of a license.

JUDGMENT

Ninala Jayasurya, J. - Aggrieved by the order of the learned Single Judge dated 03.03.2016 in dismissing the Writ Petition No.14608 of 2007, the present appeal has been preferred.

2. For the sake of convenience, parties are referred to as arrayed in the Writ Petition.

3. The petitioner/ appellant filed the Writ Petition seeking to declare the action of the respondents particularly the 1st respondent in rejecting to refund the proportionate license fee and F.D.R., amount to the petitioner on suspension and cancellation of license of M/s.Bhairava Wines shop, proprietary concern of the petitioner as illegal, unjust, arbitrary and to set aside the order passed by the 1st respondent vide Memo dated 22.01.2007 with a further direction to refund the proportionate license fee and F.D.R., amount to the petitioner/licensee.

4. By an order dated 18.12.1998, the 3rd respondent cancelled the license, on the premise that the petitioner established a wine shop contrary to Rule 6 of A.P.Excise(IL & FL) Retail Sales Conditions of Licenses) Rules, 1993 (for short 'the Rules') as the distance was found 89 meters to Zilla Parishad High School, S.R.Puram.

5. Before the learned Single Judge, it was pleaded that the license was granted after inspection of the premises and as the petitioner has not committed any illegality in obtaining the license and as the same was cancelled at the instance of the respondents, the petitioner is entitled for refund of proportionate license fee. It is also contended that in the order of cancellation dated 18.12.1998, it was mentioned that the refund of proportionate license fee to the licensee cannot be made as the licensee was involved in excise Crime in P.R.No.183/97-98, that the refund is subject to the outcome of criminal case pending against the licensee and as the said criminal case ended in acquittal, the petitioner is entitled for refund of proportionate license fee. Despite the said observation, the request of the petitioner to refund the license fee was rejected by the 2nd respondent through proceedings dated 23.02.2005. Subsequently, the 1st respondent vide Memo dated 22.01.2007 informed the petitioner that the Revision Petition seeking to refund the license fee on cancellation of license is rejected for the reasons stated therein.

6. The learned Single Judge, while examining the matter, with reference to the said cancellation order and the Memo referred to above vis-à-vis Section 31(3) of the Andhra Pradesh Excise Act, 1968(for short 'the Act'), dismissed the Writ Petition, inter alia holding that since the license issued in favour of the petitioner was cancelled on the ground that the shop was situated near the Educational institution and such cancellation was not challenged, the petitioner is not entitled for refund of proportionate license fee.

7. The learned counsel for the appellant/writ petitioner, inter alia contends that the order of the learned Single Judge is not sustainable as Section 31(3) of the Act has no application to the case on hand, and the proportionate license fee has to be refunded in view of the acquittal of the petitioner in C.C.No.310 of 2001. It is the contention of the learned counsel for the petitioner/appellant that as is evident from the cancellation order dated 18.12.1998, the petitioner/appellant is entitled to refund of proportionate license fee, subject to the outcome of criminal case pending against him. He submits that the said case after a detailed Trial was dismissed by an order dated 23.07.2005 and the petitioner/appellant was acquitted. In such circumstances, the learned counsel submits that the order passed by the Excise authorities rejecting the request of the petitioner to refund the proportionate license fee, is unjust, arbitrary and unsustainable. He submits that the learned Single Judge went wrong in not appreciating these crucial aspects in a proper perspective and grossly erred in dismissing the Writ Petition by referring to Section 31(3) of the Act. Makin