IMPORTANT POINT
Rule 15 of the Jharkhand Excise (Operation of Retail Product Shops through Jharkhand State Beverages Corporation Limited) Rules, 2022, which imposed penalties on placement agencies for shortfalls in Minimum Guarantee Revenue, was held to be ultra vires the Jharkhand Excise Act, 1915, and unconstitutional as it violated the statutory framework and principles of natural justice.

JUDGMENT :

Per Deepak Roshan J.

Present batch of writ applications were earlier tagged to be heard analogous and are being decided by this common order.

2. In W.P.(C) No. 2072 of 2023, Petitioner-Urmila International Services Private Limited has prayed for the following reliefs:-

(a) for setting aside the Show Cause Notice dated 11.04.2023 bearing no. 767 (Annexure-5) issued by the Jharkhand State Beverages Corporation Limited to Urmila International Services Private Limited;

(b) setting aside the E-Tender notice bearing no. JSBCL/08 dated 10.04.2023 read with its corrigendum contained in Letter No. 780 dated 15.04.2023 (Annexure-4) issued by the Jharkhand State Beverages Corporation Limited;

(c) declaring Clause 8(8) of Section VI of the Tender Document floated by the Respondent as bad in law and hence null and void;

(d) declaring Rule 15 of the “Jharkhand Utpaad (Jharkhand Rajya Beverage Corporation Limited ke Madhyam se Khudra Utpad Dukanoka Sanchalan) Niyamawali, 2022” (“Retail Rules, 2022”) as arbitrary, illegal, unconstitutional and in violation of Articles 14, 19 and 21 of the Constitution of India;

3. In W.P.(C) No. 2162 of 2023, Petitioner-M/s. A2Z Infra services Limited has prayed for the following reliefs:-

(a) For issuance of an appropriate writ/order/direction, including Writ of Declaration, declaring Rule 15 of the Jharkhand Excise (Operation of Retail Product Shops through Jharkhand State Beverages Corporation Limited) Rules, 2022, (Annexure-1) as being ultra vires the provisions of the Bihar Excise Act, 1915 (as adopted) and also ultra vires the provisions of Articles 14, 19(1)(g) and 265 of the Constitution of India.

(b) For issuance of further appropriate writ/order/direction, for quashing/setting aside the order contained in Letter No. 696 dated 01.04.2023 (Annexure-8) issued by Respondent No.3-Managing Director, Jharkhand State Beverages Corporation Limited, wherein Petitioner has been imposed penalty of Rs.1,21,78,40,140/- in terms of Rule 15 of the Jharkhand Excise (Operation of Retail Product Shops through Jharkhand State Beverages Corporation Limited) Rules, 2022 (hereinafter referred to as “Rules of 2022’ for short) (Annexure-1).

(c) In alternative to prayer (i) above, Petitioner prays for issuance of an appropriate writ/order/direction, including Writ of Declaration, declaring that definition of Minimum Guarantee Revenue as contained under Rule 2(xxiv) of Rules of 2022, to the extent it defines Minimum Guarantee Revenue to include only Excise Duty and Excise Transport Duty, is contrary to the definition of Excise Revenue contained under Section 2(ix) of the Bihar Excise Act, 2015 (as adopted).

(d) Further, in alternative to prayer (i) above, Petitioner prays for issuance of a further appropriate writ/order/direction, including Writ of Declaration declaring that the demand raised upon the Petitioner vide Letter No. 696 dated 01.04.2023 (Annexure-8) towards Minimum Guarantee Revenue (for short ‘MGR’) in alleged exercise of the power under Rule 15 of the Rules of 2022 is, per se, illegal, arbitrary, unreasonable, confiscatory and oppressive, especially in view of the fact that Minimum Guarantee Revenue for the financial year 2022-23 has already been achieved by the State of Jharkhand through Jharkhand State Beverages Corporation Limited.

4. In W.P.(C) No. 2198of 2023, Petitioner-M/s. Sumeet Facilities Limited has prayed for the following reliefs:-

(a) To hold and declare Rule 15 of the Jharkhand Excise (Operation of Retail Excise Shops by the Jharkhand State Beverage Corporation Limited) Rule, 2022 (Annexure-1) as ultra vires Article 14 of the Constitution of India and also the provisions of Jharkhand Excise Act, 1915;

(b) To hold and declare that the collection of excise revenue in the form of Excise Duty including Additional Excise Duty as also Excise Transport Duty is the responsibility of a licensee under the Jharkhand Excise Act and such statutory responsibility cannot be contracted out to the placement agency;

(