IN THE HIGH COURT OF JHARKHAND AT RANCHI
RAJESH SHANKAR, J.
Gurdeep Singh - Petitioner
Versus
The State of Jharkhand & Ors. - Respondents
W.P.(C) No. 1059 of 2020
Decided On : 15-03-2023
License Fee Refund - Bar/Restaurant - Jharkhand Gazette Notification No. 125 dated 14.03.2014 - The court quashed the letter refusing refund/adjustment of proportionate amount of license fee for the petitioner and directed the respondent to calculate and refund the proportionate amount of license fee for the period from 01.04.2017 to 12.11.2017 with 6% interest if not refunded within six weeks.
Fact of the Case:
The petitioner sought refund of excess amount charged against annual license fee for his bar/restaurant for the financial year 2017-18, as he could only run his business for five months due to confusion regarding the bar license renewal.
Finding of the Court:
The court found the refusal of refund/adjustment of proportionate amount of license fee to be unreasonable and arbitrary, and quashed the letter issued by the respondent No.5. The respondent was directed to calculate and refund the proportionate amount of license fee for the period from 01.04.2017 to 12.11.2017 with 6% interest if not refunded within six weeks.
Issues: The main issue was the refusal of the respondent to refund the proportionate amount of license fee for the period the petitioner could not run his bar/restaurant due to confusion regarding the bar license renewal.
Ratio Decidendi: The court held that the refusal to refund the proportionate amount of license fee was unreasonable and arbitrary, as the petitioner could not run his business for a certain period due to confusion regarding the bar license renewal.
Final Decision: The present writ petition was allowed, and the court directed the respondent to calculate and refund the proportionate amount of license fee for the period from 01.04.2017 to 12.11.2017 with 6% interest if not refunded within six weeks.
JUDGMENT :
The present writ petition has been filed for quashing the letter as contained in memo No. 282 dated 18.02.2019 (Annexure-5 to the writ petition) issued by the respondent No.5 to the petitioner pursuant to his application dated 26.12.2018 whereby his request for refund of excess amount charged against annual license fee of his bar/restaurant for the financial year 2017-18 has been rejected.
2. Learned counsel for the petitioner submits that the petitioner had earlier preferred a writ petition being W.P.(C) No. 4135/2018 before this Court challenging the letter as contained in memo No. 1839 dated 03.11.2017 issued by the respondent No.5 whereby he was directed to pay Rs.18 Lac as license fee for the entire financial year 2017-18 despite the fact that he could run his bar-cum-restaurant only for five months. The said writ petition was disposed of vide order dated 05.11.2018, the relevant part of which reads as under :
Having heard learned counsel for the parties and looking to the nature of the prayer made in the writ petition, the petitioner is given liberty to file a fresh representation before the respondent no.5, claiming proportionate refund of the amount deposited by the petitioner towards the bar licence fee for the financial year 2017-18. On receipt of such representation, the respondent no.5 after providing due opportunity of hearing to the petitioner/his representative shall take appropriate decision by passin
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 main legal point established is that the disputed factual questions should be adjudicated by the competent authority, and the grant of license in excise matter is not a fundamental right.
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 ....
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.
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