Excise Authorities lack the power to levy interest on accumulated license fees under Section 49 of the Maharashtra Prohibition Act; interest is chargeable only from the date a fee becomes due.

JUDGMENT :

Sunil B. Shukre, J.

Rule. Rule made returnable forthwith. Heard learned Counsel for the Petitioner and learned AGP for the Respondents.

2. We find that this Petition involves a question of law relating to the power of the Excise Authorities to levy interest on accumulated license fees and in the opinion of the learned Counsel for the Petitioner, the issue is also covered by the judgments of Division Bench of this Court at Aurangabad in Writ Petition No. 13545 of 2017 decided on 21st November 2017 and order of the learned Single Judge in Civil Application No. 2300 of 2019 in Writ Petition No. 13623 of 2018, dated 21st November 2019. We have taken up this matter for final hearing by making Rule by consent of the parties.

3. The Petitioner was issued FL-II license but for some reason or the other it expired some time in the year 2000 and therefore, the Petitioner made an effort to obtain renewal of the said license. First such effort was made by the Petitioner some time in February 2017, wherein she requested that if she was given some concession in paying the renewal fees by installments, it would enable her to run the FL-II license, which was so necessary for her. It appears that the Petitioner also made an Application for grant of concession in charging of the license renewal fees. But, such request of the Petitioner was not granted by the Excise Authorities, which is evident from the impugned communications dated 15th February 2018 and 22nd May 2018. After such rejection of the request of the Petitioner, the Application of the Petitioner was decided by the order passed on 30th August 2022 whereby, the Application for license renewal was granted subject to payment of the license renewal fees, Application Fees and interest at the rate of 2% per month at the accumulated license fees. Being aggrieved by the same, the Petitioner is before this Court.

4. Learned Counsel for the Petitioner submits that no interest on the accumulated license fees could be levied by the Excise Authorities as there is no power conferred upon them, under Section 49 of the MAHARASHTRA PROHIBITION ACT , 1949 ("the Act"). In support he has relied upon the view taken by co-ordinate bench of this Court at Aurangabad in Writ Petition No. 13545 of 2017 decided on 21st November 2017. He further submits that even if the power of the Excise Authorities to levy interest under Section 114 of the Act is taken into consideration, it can be so, only from the date of demand and not on the amount of accumulated license fees as held in the case of Ashok Pandurang Rane v. State of Maharashtra and Ors., Civil Application No. 2300 of 2019 in Writ Petition No. 13623 of 2018 decided on 21st November 2019 by the Learned Single Judge of this Court.

5. Learned AGP for the Respondents submits that the Petitioner had earlier sought concession in payment of the interest from the authorities but request of the Petitioner was rejected and therefore, now the Petitioner cannot be permitted to question the action of the authorities in levying interest on the accumulated license fees. He further submits that the interest, in terms of Section 114 of the Act is chargeable on the amount due and in this case, it would be in the amount which was due since the year 2000.

6. In our considered view, there is a great force in the submission of the learned Counsel for the Petitioner and no merit in the submission of learned AGP for the State, for the reason that issue involved in this Petition is already covered by the afore stated judgments relied upon