The court upheld the right to dispose of left-over stock under the Delhi Excise Rules despite new licensing restrictions, ensuring compliance with regulatory procedures.

JUDGMENT

Prathiba M. Singh, J. (Oral)--This hearing has been done through hybrid mode.

2. The present two writ petitions have been filed by the Petitioner-ANHEUSER BUSCH INBEV INDIA LTD., the manufacturer of Beer under the following trademarks/brands.

"1. HAYWARDS 5000 GOLD PREMIUM STRONG BEER

2. HOEGAARDEN BELGIAN WIT

3. CORONA EXTRA PREMIUM LAGER BEER

4. BUDWEISER INTERNATIONAL KING OF BEERS

5. BUDWEISER MAGNUM INTERNATIONAL KING OF BEERS"

3. It is the case of the Petitioner that it has been constrained to approach this Court owing to certain issues that have arisen in respect of the left-over stock of its distributor M/s. Indo Spirit.

4. The GNCTD has introduced a new excise policy w.e.f. 1st September, 2022. The said policy replaces the earlier policy which was introduced on 17th November, 2021. The primary difference as submitted by ld. Counsel for the Petitioner between the earlier and the current policy is that under the earlier policy, distributors, agents etc. could obtain licenses under the Delhi Excise Rules and sell liquor in Delhi by paying license fee. However, under the current regime licenses are granted only to the manufacturers i.e., distillers, breweries, bottling plants and other similarly situated entities. The said difference is highlighted by reference to clause 3.1 of the new Excise Policy, which prescribes the eligibility conditions.

"3. ELIGIBILITY TO HOLD LICENCE:

3.1 L-1 licence shall be granted only to a company incorporated under the Companies Act, 1956, or 2013, a firm registered under the Partnership Act, 1932, or a Society registered under the relevant Co-operative Societies Act or sole proprietor or a firm registered under Limited Partnership Liability Act, 2008, having licenced manufacturing units (distillery/brewery/Winery/bottling plant or so)

3.2 Apart from the affidavits filed by an applicant for L-1 licence regarding sale figures, the applicant for the L-1 licence shall have to furnish along with the application a certificate from the excise authorities of the concerned State countersigned by an officer not below the Excise Officer as regards the sale figures and Ex Distillery Price (ED). The applicant will also be required to furnish attested photocopies of the export pass/export verification certificate (EVC) issued by the Excise authorities as a further proof of the sale figures. The manufacturing unit and attorney/authorized signatory both will be held liable for providing any wrong information in this regard.

3.3 Each Licencee (distillery/Brewery/Winery/Bottling Plant etc.) shall have to maintain a separate godown. The Licencee shall be responsible for any act of omission or commission done by the company or by the person appointed by the company as authorized representative/executive manager/agent or attorney for carrying out day to day business affairs. The person so appointed once shall not be changed during the currency of the licence without the prior intimation to the Deputy Commissioner Excise, Govt. of NCT of Delhi (hereinafter called "the Deputy Commissioner").

5. The case of the Petitioner is that the earlier license holder i.e. M/s. Indo Spirit had a license for the complete year, which would end on 31st March, 2023. However, due to the new policy, which was introduced on 1st September, 2022, the earlier license automatically lapsed.

6. On 31st August, 2022, M/s. Indo Spirit thus, made a representation to the Department of Excise, GNCTD giving details of its existing stock so that it may be permitted to dispose of the same. The said pe