The court held that a demand for a license fee issued years after the relevant license period is arbitrary and suggests a waiver of prior conditions.

ORAL ORDER:

Heard Sri C. Prakash Reddy, Learned Counsel for the Writ Petitioner and Sri K. Arjun Chowdhary, Learned Assistant Government Pleader for Prohibition & Excise.

2. The present Writ Petition is filed seeking the following relief:

“It is prayed that this Hon’ble Court may be pleased to issue an appropriate writ, order or direction more particularly one in the nature of Writ of Mandamus by declaring the notice RC.No.172/2015/B2 dated 01-10-2015 issued by the 3rd Respondent directing to pay an amount of Rs.1,00,000/- towards Permit Room license fee for the year 2012-13 along penal interest as arbitrary and illegal and consequently set aside the same and to pass such other order or orders as this Hon’ble Court may deem fit and proper in the circumstances of the case.”

3. Vide Interim Order dated 24.06.2016, the Learned Single Judge of this Court had suspended the impugned Notice dated 01.10.2015 (Ex.P.2). It is the case of the Writ Petitioner that vide G.O.Ms.No.391, dated 18.06.2012, he has applied for running a Liquor Shop in Thyalluru Village, Pedakurapadu Mandal, Guntur District. As per the said G.O., the population of Thyalluru Village is 5,598 as per 2011 Census. As per the rules in force, a Village with the population above 5,000 persons, it is mandatory on the Applicant to obtain Liquor License under Form A(4) and a Permit Room of License under Form A(4)-B by paying the requisite License Fee for both the purposes.

4. The Writ Petitioner was the successful Applicant (by way of draw of lots) for the above said Thyalluru Village for the license period commencing from 01.07.2012 to 30.06.2013. It is the case of the Writ Petitioner that he paid the license fee for running a Liquor Shop and was issued a License under Form-A(4). The License fees fixed for running a Permit Room for the Prohibition Year of 01.07.2012 to 30.06.2013 is Rs.1,00,000/-. Neither the Petitioner has paid this amount nor the Official Respondents have insisted on the Writ Petitioner in paying the requisite One Lakh Rupees and to obtain the license under Form A(4)-B. Admittedly, the Writ Petitioner has conducted only the Liquor Shop for the said Prohibition Year i.e., 01.07.2012 to 30.06.2013 but did not run the Permit Room. Anytime throughout the said Prohibition Year, the Respondents have not demand the payment of One Lakh Rupees nor have they insisted the Writ Petitioner to obtain the license for Permit Room under Form A(4)-B by paying the requisite License Fee.

5. For the first time, the Official Respondents have issued Notice on 01.10.2015 (Ex.P.2) demanding payment of One Lakh Rupees for grant of a Permit Room License under Form A(4)-B. It is also submitted by the Writ Petitioner that the License for running Liquor Shop and the Permit Room was renewed for the Excise Year 01.07.2013 to 30.06.2014. It is also submitted that the License fee in respect of the Permit Room has been enhanced from One Lakh per annum to Two Lakhs per annum for the following year. It is submitted that the Writ Petitioner has paid this enhanced amount of Rs.2,00,000/- for obtaining Permit Room in addition to the License for running a Liquor Shop and conducted the Permit Room for the Prohibition Year 01.07.2013 to 30.06.2014 as well. Having been aggrieved by the Notice received by the Writ Petitioner dated 01.10.2015, the Writ Petitioner has approached this Court by filing the present Writ Petition.

6. It is already noted above that vide Interim Order dated 24.06.2016, this Court had suspended the Notice dated 01.10.2015 in W.P.M.P.No.24959 of 2016.

7. Sri K. Arjun Chowdhary, Learned Assistant Government Pleader submits that the Audit Department has pointed out that the Official Respondents did not collect the License fee for running a Permit Room for the Prohibition Year 01.07.2012 to 30.06.2013 and this short-coming was noticed during the course of audit and thereby, raised the demand for depositing of the said amount vide Notice dated 01.10.2015. It is admitted by both parties