The Principal Secretary, State Excise had no authority under the law to conduct the hearing for the cancellation of the licence, and the impugned order was an abuse of power. The impugned order also infringed the petitioner's statutory right of appeal.

JUDGMENT

1. Rule. Rule made returnable forthwith. Heard finally at admission stage with consent of both the sides.

2. The petitioner/ Shri Saikrupa Sugar and Allied Industries Ltd., Hiradgaon has challenged the impugned order dtd. 10/2/2022 passed by respondent no.1 in MPL-0621/P.K.81/State Excise-3.

3. The petitioner/Company is running sugar factory and distillery plant at Hiradgaon, Taluka Shrigonda, District Ahmednagar. The flying squad of State Excise Department, on receiving relevant information conducted raid on the distillery plant of the petitioner on 14/3/2020 in presence of two panch witnesses. At the time of raid, it was found that the petitioner/sugar factory has sold 80,000 Ltrs. rectified spirit worth of Rs.9,75,000.00 to Rachana Chemicals Pvt. Ltd.,which was not in existence. The truck along with rectified spirit of 80,000 Ltrs. came to be seized. The F.I.R. came to be registered against the Managing Director of the petitioner and four others. Accordingly, Managing Director of the petitioner and four other persons came to be arrested in Crime No.54/2020 for the offences punishable under Ss. 65(A)(E), 80(1), 83, 90, 108, 98 (2) of the Maharashtra Prohibition Act, 1949 (hereinafter referred to as 'the Act' for sake of convenience). Now the investigation of that crime is over and charge-sheet is filed in the Court of Judicial Magistrate, First Class at Rahata.

4. Respondent no.2 issued show-cause notice dtd. 7/12/2020 to the petitioner as to why its distillery licence should not be cancelled. The petitioner replied the said notice. Respondent no.1/Principal Secretary, State Excise, Home Department, Mantralaya, Mumbai, after hearing both the sides was pleased to cancel the distillery licence of the petitioner by impugned order dtd. 10/2/2022.

5. Feeling aggrieved by the impugned order passed by the Principal Secretary, State Excise, Home Department, Mumbai, the petitioner has preferred this petition by invoking Article 227 of the Constitution of India.

6. Heard Mr R.N. Dhorde, learned Senior Counsel instructed by Mr V.S. Kadam, learned Counsel for the petitioner and Mr D.R. Kale, learned Incharge Government Pleader for the State.

7. Mr Dhorde, learned Senior Counsel invited my attention to the showcause notice dtd. 7/12/2020 issued by the Commissioner, State Excise Department, Maharashtra State. He pointed out that the Commissioner, State Excise has not cancelled the licence of the petitioner. The Principal Secretary, State Excise, Home Department, Maharashtra State, Mumbai has cancelled the distillery licence of the petitioner by invoking Sec. 54 of the Act. He submitted that in view of provisions of Sec. 54 of the Act, the Commissioner is empowered to cancel the licence and not the Principal Secretary. He submitted that in this case, the Commissioner, State Excise has issued showcause notice and Principal Secretary, State Excise, Home Department has cancelled the licence which is contrary to the provisions of Sec. 54 of the Act. He pointed out that the grounds taken in the show-cause notice dtd. 7/12/2020 are to the extent of alleged illegal sale of rectified spirit to Rachana Chemicals Pvt. Ltd and incorrect entries in the register maintained by the petitioner. The impugned order of cancellation of the licence dtd. 10/2/2022 speaks other grounds also which have no foundation in the show-cause notice. Mr Dhorde, Senior Counsel vehemently submitted that the impugned order passed by the Principal Secretary, State Excise is bad in law and contrary to the provisions of Sec. 54 of the Act and liable to be quashed and set aside.

8. Mr Dhorde, learned Senior Counsel for the petitioner submitted that distillery unit of the petitioner has stopped its operation since 10/2/2022 in view of cancellation of licence by respondent no.1. More than 100 employees working in the distillery unit have been affected. The sugar season is remained hardly for one month. He, therefore, urged that this aspect also needs to be considered.

9. M