Bhandari, J.

1. The principal point for decision which has been somewhat obscured by the raising of a number of subsidiary issues is whether the Excise and Taxation Commissioner was justified in declining to issue an excise licence to the Lumsden Club at Amritsar. ,

2. The petitioner in this case is the Lumsden Club, Amritsar, a society registered under the Indian Companies Act, 1913, with the object of promoting social intercourse encouraging literature and sport and providing rational entertainment and amusement.

The income of the club which is derived almost entirely from entrance fees, membership fees and money paid by the members for the food and drinks consumed by them or their friends and is expended for defraying the day to day expenses of the organisation.

Prior to 1954 the intoxicating liquors purchased by the club were supplied to the members or their specially invited guests at a price fixed by, the Executive Committee of the Club.

3. On 4-1-1949 the Excise and Taxation commissioner issued a notification under Section 54,. Punjab Excise Act, which declared that no club, bona fide or proprietary shall be at liberty to sell foreign liquor by retail unless it had o