JUDGMENT

A. K. PATNAIK, J. : The petitioner was a licence in re¬spect of three I.M.F.L. ‘OFF’ shops in the district of Balasore for the years 1997-98, 1998-99 and 1999-2000. For each of the three shops, an agreement was executed between the petitioner and the Collector, Balasore which, inter alia, provided that the petitioner will sell a minimum guaranteed quantity (for short, ‘M.G.Q.’) per month. The petitioner submitted a representation dated 5.12.2000 for reduction of M.G.Q. for the said three shops and by order dated 26.4.2002, the Government of Orissa in the Excise Department allowed a reduction of 20% on the existing M.G.Q. for the three shops for the years 1997-98, 1998-99 and 1999-2000. Pursuant to the said order dated 26.4.2002, the peti¬tioner has been asked to deposit arrear government revenue amounting to Rs.59,79,401/- towards short-drawn M.G.Q. of I.M.F.L. and Beer for the aforesaid three shops during the years 1997-98 to 1999-2000 by a demand notice dated 22.7.2003 issued by the Superintendent of Excise, Balasore in Annexure-9 to the writ petition. Aggrieved, the petitioner has filed this writ petition under Article 226 of the Constitution praying for quashing the said demand notice dated 22.7.2003 in Annexure-9 to the writ petition.

2. Mr. N. Patra, learned counsel for the petitioner sub¬mitted that under Rule 6-A of Orissa Excise (Exclusive Privilege) Foreign Liquor, Rules, 1989 a licencee is required to lift the M.G.Q. of foreign liquor every month, but if he lifts less than the M.G.Q. in any month, he will not be liable for any duty for short drawn M.G.Q. if he sells the entire M.G.Q. of foreign liquor for the excise year before expiry for the term of the licence. He submitted that in the present case, during all the three years, 1997-98, 1998-99 and 1999-2000 the petitioner had sold the entire M.G.Q. of I.M.F.L. and Beer fixed for the excise years for the three shops, and therefore, even if the petitioner was not able to lift the M.G.Q. in any particular month he was not liable to pay any excise duty on account of short drawn M.G.Q. during any particular month. Mr. Patra cited the decisions of the Supreme Court in Mohammad Ali Khan and others v. Commis¬sioner of Wealth-tax, A.I.R. 1997 S.C. 1165, State of Maharashtra and others v. Nanded-Parbhani, Z.L.B.M.V., A.I.R. 2000 S.C. 725 and M/s. Grasim Industries Ltd. v. Collector of Customs, Bombay, A.I.R. 2002 S.C.1706 for the proposition that a provision of a statute has to be given its plain and literal meaning. He submit¬ted that it will be clear from the plain and literal language of sub-rule (5) of Rule-6A of the Orissa Excise (Exclusive Privi¬lege) Foreign Liquor Rules, 1989 that a licencee can sell the entire M.G.Q. of foreign liquor fixed for the excise year before expiry of the term of the licence.

3. Mr Patra submitted that this is also the interpretation given by the State Government in the communication dated 25.1.2001 of the Government of Orissa in the Excise Department to the Excise Commissioner, Orissa, Cuttack, a copy of which has been annexed to the writ petition as Annexure-7 which states that if any licence having short fall in lifting of M.G.Q. comes up with a request to allow him to lift the short-drawn M.G.Q. before expiry of the term of the licence, the Excise Commissioner may allow such cases. He submitted that pursuant to the said communi¬cation in Annexure-7, a number of foreign liquor shops have been allowed adjustment of monthly short drawn M.G.Q. against the total quantity of foreign liquor during the term of the licence. In this context, he referred to the copy of the order dated 1.2.2001, Annexure-10 to the rejoinder affidavit of the petition¬er by which eleven I.M.F.L. shops mentioned therein have been allowed such adjustment of short drawn quantity of M.G.Q. against total quantity lifted during the financial year by the Excise Commissioner, a copy of the order dated 1.3.2001 in Annexure-11 to the rejoinder affidavit of the petiti