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2022 Supreme(Jhk) 149

IN THE HIGH COURT OF JHARKHAND AT RANCHI
RAVI RANJAN, SUJIT NARAYAN PRASAD, JJ.
Ajay Kumar Gupta, S/o. Shri Rameshwar Prasad - Petitioner
Versus
The State of Jharkhand, through the Secretary, Department of Excise & Prohibition, Government of Jharkhand & Ors. - Respondents
W.P.(C) No.6300 of 2019
Decided On : 15-03-2022

Advocates Appeared:
For the Petitioner: Mr. Sumeet Gadodia.
For the Respondents: Mr. Mithilesh Singh, GA-IV.

Headnote:

Constitution of India, 1950 - Article 226, 14 and 19(1)(g) - Jharkhand Utpad (Madira ki Khudra Bikri Hetu Dukano Ki Bandobasti Evam Sanchalan) Niyamawali, 2018 - Rule 47(11), 44, 46(2), (1) - Bihar Excise Act, 1915 - Section 68, 42, 89 (1) and (3) - Cancellation of a License - Excise Transport Duty - Forfeiting Amount of Security Deposit - Whether provision contained in Rules 44, 46(2) and 47(11) of Rules, 2018 is ultra vires to provision of Section 42 of Excise Act, 1915 - Whether decision of forfeiting earnest money and Excise Transport Duty is justified – Held, Prevailing law provides as under Rule 44 and 47(11) of Rules, 2018 to effect that in case of charging excess price than Maximum Retail Price consequence would be cancellation of license and further consequence would be forfeiture of Security Deposit and Excise Transport Duty as per provision of Rule 46(2) of Rules, 2018 - 47(11) and in furtherance if exercised their power under provision of Section 46(2) by forfeiting amount of security deposit and excise transport duty, same cannot be said to be improper and unjustified - Accordingly, issue No.2 is also answered against petitioner - In view thereof, this Court is on no merit in this context and hence, prayer made by petitioner for release of forfeited amount, is also hereby, rejected – Petition dismissed.

JUDGMENT :

Sujit Narayan Prasad, J.

1. The instant writ petition is filed under Article 226 of the Constitution of India for the following reliefs:

    “(i) For issuance of an appropriate writ/order/direction, (as adopted) and is also wholly arbitrary and violative including a Writ in the nature of Declaration, declaring Rule 47(11) of the “Jharkhand Utpad (Madira ki Khudra Bikri Hetu Dukano Ki Bandobasti Evam Sanchalan) Niyamawali, 2018”, (Annexure-I), which provides for mandatory cancellation of a license for the irregularity of selling liquor in excess of the fixed maximum retail price is ultra vires the provisions of Section 68 of the Bihar Excise Act, 1915 of Articles 14 and 19(1)(g) of the Constitution of India.

(ii) For issuance of an appropriate writ/order/direction, including Writ of Declaration, declaring Rule 44 of the “Jharkhand Utpad (Madira ki Khudra Bikri Hetu Dukano Ki Bandobasti Evam Sanchalan) Niyamawali, 2018”, (Annexure-I), to the extent it provides that if a licensee charges from a consumer price in excess of that printed on the labels of the bottles of liquor, action may be taken to cancel the license, as being wholly arbitrary, illegal and violative of Articles 14 and 19(1)(g) of the Constitution of India and also not being in consonance with the legislative intention as reflected in Section 42 of the Bihar Excise Act, 1915, as adopted.

(iii) For issuance of an appropriate writ/order/direction, including Writ of Declaration, declaring Rule 46(2) of the “Jharkhand Utpad (Madira ki Khudra Bikri Hetu Dukano Ki Bandobasti Evam Sanchalan) Niyamawali, 2018”, (Annexure-I), as ultra vires being contrary to the scheme of the Bihar Excise Act, 1915, as adopted, and beyond the powers of delegated legislation conferred to the State Government under Section 89 of the said Act and also ultra vires the provisions of Articles 14 and 19(1)(g) of the Constitution of India.

(iv) For issuance of an appropriate writ/order/direction for quashing/setting aside the order contained in Letter No.1203 dated 26.10.2019 (Annexure-8) passed by Respondent No.5-Deputy Commissioner, Dhanbad, whereby license granted in favour of the Petitioner for running of Foreign Liquor shop vide License No.011_FLX_DHN_19-20 years 2019-20 has been cancelled and further direction has been issued for forfeiture of advance Excise Transport Duty (for short “ETD”) and Security Deposit amount, total amounting to Rs.34,50,000/-.

(v) For issuance of further appropriate writ/order/direction, including Writ of Mandamus directing the Respondent-authorities to open the seal of Liquor Shop of the Petitioner which was being operated by him pursuance to the license granted in his favour vide License No.011_FLX_DHN_19-20 years 2019-20 and allow the Petitioner to operate the said Liquor Shop after accepting compounding fine in terms of Section 68 of the Bihar Excise Act, 1915, as adopted.”

2. The brief facts of the case which require to be enumerated herein reads as hereunder:

The respondent-State of Jharkhand issued an advertisement on 22.01.2019 notifying the process of settlement of Retail Excise Shops through lottery. The petitioner participated in the aforesaid lottery process and was declared successful in respect of the Shop bearing Group No.10 notified for the District of Dhanbad, which comprised of a Foreign Liquor Shop situated at Police Line, Dhanbad and a Country Liquor Shop situated at Kusma in the District of Dhanbad. It is stated that two separate licenses were issued in faovur of the petitioner.

The petition involves the dispute pertaining to Foreign Liquor Shop in respect of shop bearing Group No.10 which has been allotted in favour of the petitioner having license No.011_FLX_DHN_19-20 years 2019-20 which is valid for a period of three years starting from 2019 to 2022.

The aforesaid settlement of Liquor Shop has been initiated in pursuance to the rule promulgated vide notification dated 24.12.2018 which have been promulgated in exercise of power conferred under Sect

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