$~9 * IN THE HIGH COURT OF DELHI AT NEW DELHI Date of Decision: 13^th January, 2023 + W.P.(C) 17126/2022 & CM APPL. 54419/2022 M/S INDO SPIRITS ..... Petitioner Through: Mr. Sameer Rohatgi and Mr. Kartikey Singh, Advocates. (M:9479397843)

versus COMMISSIONER OF EXCISE, GOVT. OF NCT OF DELHI &

ORS. ..... Respondents Through: Mr. Santosh Kumar Tripathi, Mr.

Arun Panwar, Mr. Pradyuman Rao, Mr. Tapesh Raghav, Mr. Utkarsh Singh and Mr. Mehak Rankawat, Advocates. (M:9818112250)

CORAM:

JUSTICE PRATHIBA M. SINGH Prathiba M. Singh, J. (Oral)

1. This hearing has been done through hybrid mode.

2. The present petition has been filed by the Petitioner - M/s Indo Spirits seeking permission to transfer the Petitioner’s stock of IMFL from its present warehouse at E-32, Okhla Phase-II, New Delhi (hereinafter ‘E-32 premises’) to an alternate premises. The Petitioner impugns the order dated 5^th December, 2022 passed by the Commissioner of Excise dismissing the representations of the Petitioner seeking permission to transfer the said stock.

3. The Petitioner held L-1 wholesale license under the Delhi Excise Policy 2021-22 and was engaged in the business of wholesale supply of liquor in Delhi from 17^th September, 2021 to 31^st August, 2022. In W.P.(C) 17126/2022 Page 1 of 6 Signature Not Verified Digitally Signed accordance with the terms and conditions of L-1 license, the Petitioner took three warehouses on lease basis including the one located at E-32, Okhla Phase-II, New Delhi. The case of the Petitioner is that with the new excise policy, which was introduced in September, 2022, the Petitioner no longer is a licence holder for sale of liquor in Delhi. In fact, the said premises has been sealed by the department. For the E-32 premises, the Petitioner is stated to be incurring huge rent to the tune of Rs.33,48,000/- per month including GST, which it wishes to avoid as it already has another licensed premises, where the stock can be stored.

4. It is submitted by Mr. Sameer Rohatgi, ld. Counsel appearing for the Petitioner that the new warehouse where the Petitioner intends to shift some of the stock is at B-230, Okhla Industrial Area, Pocket A, New Delhi- 110020 (hereinafter ‘B-230 premises’). He further submits that a substantial portion of the stock is also due to expire in January, 2023. Accordingly, the Petitioner wishes to destroy stock of 79,127 cases and shift only 25,374 cases.

5. Ld. counsel for the Respondents submits that such transfer has not been permitted as the stock is always tied to the premises which is entered in the portal of the excise department. He further submits that such transfer is not permissible under the Act and Rules.

6. Heard. The facts of this case show that the Petitioner no longer enjoys a valid liquor license in terms of the Act and Rules, and it has to deal with the leftover stock. The manner in which the leftover stock can be dealt with is prescribed in Rule 56 of the Delhi Excise Rules, 2010 where the Petitioner has to find an alternate licensed buyer. If there is no alternate licensed buyer which the Petitioner can identity, the stock continues to remain with the W.P.(C) 17126/2022 Page 2 of 6 Signature Not Verified Digitally Signed Petitioner. Recently, this Court in Anheuser Busch Inbev India Ltd. v. Govt. of NCT of Delhi [W.P.(C) 16485/2022, 7^th December, 2022] examined the governing scheme in respect of the manner in which leftover stock is to be dealt with and observed as under:

“16. A number of writ petitions are being filed before this Court in respect of issues, which arise qua the new excise policy, which has been introduced by the GNCTD.

17. The Delhi Excise Act, 2009 along with Delhi Excise Rules, 2010, clearly provide for the manner, in which the left-over stock is to be dealt with. The relevant rule, i.e., Rule 56 of the Delhi Excise Rules, 2010 reads as under:

“56. Procedure dealing with left over stock.- If any person, who has held a licence under these rules, has in his possession, on the expiry, or determi