IN THE HIGH COURT OF JUDICATURE AT PATNA
P. B. BAJANTHRI and JITENDRA KUMAR, JJ.
CWJC No.11867 of 2016
(10.8.2023)
Karya Nand Singh ... Petitioner
vs.
State of Bihar & Ors. ... Respondents
Bihar Excise and Prohibition Act, 2016 read with Bihar Excise (Settlement of Licences for Retail Sale of Country/Spiced Country Liquor/Foreign Liquor/Beer and composite Liquor shop) Rules, 2007–Rule 17–Petitioner, being a holder of retail excise licence, claiming refund of advance licence fee and movement fee deposited for the month of March, 2016 on the score of that there were no supply of liquors in the month of March, 2016–in the guise of giving effect to the Bihar Excise and Prohibition Act, 2016, the official respondent had taken precaution not to supply liquors and de-activate excise matters in the month of March, 2016 itself in the light of the fact that Bihar Excise and Prohibition Act, 2016 would be inforced with effect from 01.04.2016 the matter being covered by a judicial decision of the Hon'ble H.C., rendered on 30.09.2016 in CWJC No. 18863 of 2015, the petitioner is entitled for refund of movement fees–however, in absence of any provision of law, the licence fee is not refundable. (Paras 6 & 8).
CWJC No. 18863 of 2015 d/- 30.09.2016, (2003) 8 SCC 270 para 6 & 7–Referred.
P. B. Bajanthri, J. – In the instant petition, the petitioner has prayed for the following relief: –
“(i) Issuance of writ of certiorari, quashing the order, dated 24.5.2016, as contained in memo No. 1233 (Annexure- 7), passed by the Assistant Commissioner of Excise, Rohtas, Sasaram, by which the application of the petitioner for refund of the advance license fee and movement fees deposited for the month of March, 2016 on the ground that the respondents had miserablv failed to ensure supply of country liquor to the retail liquor shops of the petitioner in the month of March, 2016, has been rejected on the pretext that in terms of clause 21 of the sale notification, the petitioner is not entitled for any compensation or refund of license fee.;
(ii) To direct the respondents to refund the advance license fee of Rs.6,79,500.00 and movement fee of Rs.57,850.00, totalling Rs.7,37,350.00 deposited the petitioner as advance license fee and movement fee respectively for the month of March, 2016;
(iii) To pass such other writ(s), order(s), direction(s) as your Lordships may deem fit and proper in the facts and circumstances of the case.”
2. Brief facts of the case is that the petitioner was a holder of retail excise licence in the district of Rohtas. He had grievances that he is entitled to refund of advance licence fee and movement fees deposited for the month of March, 2016 on the score that there were no supply of liquors in the month of March, 2016.
3. In the guise of giving effect to the Bihar Excise and Prohibition Act, 2016, the official respondents had taken precaution not to supply liquors and de-activate excise matters in the month of March, 2016 itself in the light of the fact that Bihar Excise and Prohibition Act, 2016 would be inforced with effect from 01.04.2016.
4. In this backdrop, insofar as refund of movement fees is concerned, the matter is covered by a decision of this Court decided on 30th of September, 2016, in C.W.J.C. No. 18863 of 2015 (Md. Daud Khan vs. the State of Bihar & Ors.) and other connected matters and it is not disputed.
5. Insofar as refund of licence fee for the month of March, 2016 is concerned, whether the petitioner is entitled or not. Perusal of the Bihar & Orissa Excise Act, 1915 read with Rules, there is no provision for refund of licence fee for a particular month.
6. Learned counsel for the petitioner submitted that in the light of Rule 17 of The Bihar Excise (Settlement of Licences for Retail Sale of Country/Spiced Country Liquor/Foreign Liquor/ Beer and Composite Liquor Shop) Rules, 2007, it is evident that licence fee is being collected on monthly basis since there was no transaction at the behest of the State in the guise of implementation of the Bihar Prohibition and Excise Act, 2016. The petitioner is entitled to refund of licence fee.
7. In this regard, learned counsel for the petitioner cited a decision viz., State of U.P. & Others vs. Jagjeet Singh & Others, as reported in (2003) 8 SCC 270. Para 16 and 17 of the same reads as under: –
“16. We may recapitulate the position as regards the cases decided by the High Court of Allahabad pertaining to the above provisions which have been referred to in the earlier part of this judgment. All those decisions relate to the period prior to 1998 i.e. before the amendment of Rule 34(ii). In the case of Hanuman Prasad Jaiswal [1983 UPTC 362] remission/damages was allowed since on facts it was found that it was a case which amounted to cancellation of licence for the rest of the period. Hence, such a closure was beyond the purview of Section 59. The case of Om Prakash Sharma [ CMWP No. 375 of 1981, decided on 4-7-1991 (All)] was also on a different footing but the remission/damages was not refused; rather allowed, since it was found that the Government itself was at fault in not making supply of bhang from the bonded warehouse and did not make it available for sale to the licensee for a period of two months. In principle it was accepted that remission/dam
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.
The main legal point established is that a licensee is not liable to pay the licence fee for the period when the business premises remained closed, and the demand for penal interest is not justified ....
The court emphasized that the refusal to refund the proportionate amount of license fee was unreasonable and arbitrary, and directed the respondent to calculate and refund the amount with interest if....
The liability to pay excise duty is contingent upon the actual import taking place, and in the absence of provision for refunds in the Act and Rules, the court can award interest on equitable grounds....
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