2024 Supreme(Online)(AP) 4387
2024:APHC:19313 IN THE HIGH COURT OF ANDHRA PRADESH: AMARAVATI THE HON’BLE SRI JUSTICE SUBBA REDDY SATTI WRIT PETITION No.16185 of 2023 Yalamuri Sreenivasulu Reddy, S/o. Late Yalamuri Venkatasubba Reddy, R/o. D.No.13-6-577/A, Peddakapu layout, Tirupati, Licensee of M/s. Yalamuri Restaurant and Bar, D.No.13-6-772/2 Peddakapu Layout, Old Tiruchanoor Road, Tirupati.
…Petitioner Versus The State of Andhra Pradesh, rep.by its Principal Secretary, Revenue (Prohibition & Excise) Department, Secretariat, Velagapudi, Amaravathi, Guntur District, Andhra Pradesh and four others.
…Respondents Counsel for the petitioner : Sri Ashwani Kumar Counsel for respondents : GP for Prohibition &
Excise, GP for Finance
ORDER
The above writ petition is filed to declare the action of the respondents in not returning/refunding the license renewal fee amount of Rs.23,00,000/- to the petitioner collected by the respondent for Form-2B license for the years 2014-16, as illegal and arbitrary.
2. Heard Sri N. Ashwani Kumar, learned counsel for the petitioner and learned Government Pleader for Prohibition and Excise appearing for the respondents.
3. Learned counsel for the petitioner would submit that initially Form-2B license was granted to the petitioner for the year 2006- 07 vide License No.15/2006-2007 in the name and style of Yelamuri Restaurant and Bar. The license has been extended on yearly basis until 30.06.2014. The petitioner applied for renewal of 2B license for the year 2014-16 by paying necessary license fee of an amount of Rs.23,00,000/-. The license could not be renewed on the ground that the area of the business where the petitioner has been conducting is notified as prohibited area by the 1st respondent vide proceedings Rc.No.174/2013/A1 dated 26.03.2014. The petitioner made application dated 18.03.2015 seeking permission to shift his bar and restaurant. Since no action was initiated, the petitioner filed W.P.No.11033 of 2017 and the same was disposed of on 10.03.2017. Thereafter, the 3rd respondent passed proceedings vide Cr.No.864/2017/CPE/P3 dated 03.11.2017, rejecting the representation made by the petitioner. The petitioner filed W.P.No.10825 of 2018 and the same was allowed by setting aside the proceedings dated
03.11.2017.
4. Thereafter, the petitioner applied for renewal of 2B license for the year 2021-22 and 2022-25 and the respondents vide proceedings Rc.No.58/2022/B2 dated 22.08.2022 renewed Form- 2B for the license year 2022-25 for a period of three years w.e.f 01.09.2022 to 31.08.2025, subject to payment of requisite license fee. The petitioner submitted representation dated 10.09.2021 to the 3rd respondent to adjust the amount of Rs.23,00,000/-. However, no order was passed. Hence, the writ petition is filed seeking refund of the amount.
5. Counter affidavit was filed on behalf of the 5th respondent. In para No.6 of the counter affidavit, it was stated that while passing the orders on 03.11.2017, the petitioner was directed to file separate application seeking refund of the amount. The petitioner voluntarily remitted the license fee, as such, it is the mistake of the petitioner to apply for conducting business in prohibited area and hence, Rule 10 of the Andhra Pradesh Excise (Grant of License of selling by Bar and Conditions of License) Rules, 2005 (for short ‘the Rules’) is not applicable and the petitioner is not entitled for refund of amount of Rs.23,00,000/-. It was further contended that Rs.23,00,000/- was not considered while collecting license fee for the years 2021-22 and 2022-25.
Eventually, prayed to dismiss the writ petition.
6. The point for consideration is:
“Whether the petitioner is entitled to refund of money deposited?”
7. Rule 10 of the Rules deals with License Fee, mode of levying and method of payment. Rule 10 (6) manifests that “In case a licence is refused, the fee paid shall be refunded.”
8. As seen from the material available on record, there is no dispute that the petitioner paid an amount of Rs.22,90,000/-
towards license fee and Rs.10,000/- towards renewal fee on 30.06.2015. It is also an undisputed fact that the renewal was not granted to the petitioner to carry the business during that period in view of the Memo No.31022/20/2015-Exe II-REV dated 31.12.2015. Non granting of renewal can be termed as refusal. Since the area where the petitioner has been conducting business is prohibited to run business as per Excise Policy 2015- 17 and as the 2B license remitted under Section 72 (2) (ee) of the Andhra Pradesh Excise Act, 1968, the petitioner asked for adjustment of the amount of Rs.23,00,000/- and the same was not adjusted by the respondent authorities. Thus, the fact remains that the amount of Rs.23,00