The petitioner has filed the present petition being aggrieved

by the order dated 24.12.2021 passed by the Excise

Commissioner, Gwalior (Respondent No.2) whereby recovery of

Rs.3,72,56,239/- has been upheld payable under the heads of

annual license fees and Minimum Guaranteed Excise Duty.

Petitioner’s case

The petitioner is a partnership firm engaged in the

business sale of liquor under the license issued by the M.P. Excise

Department.

The State Government vide its notification dated

25.02.2020 framed and issued the Liquor Excise Policy for the

year 2020-2021 as per the provisions contained in Section 62/63

of the M.P. Excise Act, 1915 and the Rules framed thereunder. In

the said policy process of Tendering and Auctioning of the Liquor

Shops (Country and Foreign Liquors), the details of descriptions

for accepting the tenders, fixing the minimum and maximum sale

price, depositing of security amount and process of determination

of license fees were mentioned in the various clauses.

Under the above notification petitioner's firm purchased an

E-Tender and participated in the E-Auction Proceedings for the

allotment of all shops of District Ratlam (Single Group) (Country

Liquor and Foreign Liquor) The bid of the petitioner was found to

be highest i.e. Rs.2,18,00,00,000/-, hence accepted for the period

w.e.f. 01.04.2020 to 31.03.2021 with respect to shops of Single

Group Ratlam. Consequently, a communication letter was issued

on 16.03.2021 for depositing of remaining security amount

(Dharohar Rashi) of Rs. 8,72,38,712 out of the total Dharohar

Rashi amounting to Rs.10,90,00,000/-.

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5.

That as per the provisions contained in the clause No.10 of

the Excise Policy, the petitioner is required to furnish a Bank

Guarantee in the shape of a security deposit as well as 18 post-

dated cheques equivalent to the Minimum Security Duty Amount

as additional security for which again a letter was issued on

17.03.2020 by the Assistant Excise Commissioner, Ratlam.

6.

According to the petitioner that due to the sudden outbreak

of the Covid-19 Pandemic, a nationwide lockdown was imposed

w.e.f. 25.03.2020 initially for a period of 21 days therefore the

State Government issued several directions for the management

of liquor shops. In order to give some relaxation to the licensees

vide circular dated 31.03.2020 for a licensee of the year, 2020-

2021 time was extended for depositing of license fees and

security amount by further directing that the shops will be

operational only after lifting of the lockdown.

7.

Thereafter, again a circular was issued by the Excise

Commissioner to the Collectors by which certain guidelines were

issued for declaring the dry day and its proportionate adjustment

with the Minimum Guaranteed amount of payable Excise Duty.

8.

The petitioner has obtained the liquor shop from

07.05.2020. Vide notification dated 23.05.2020, the Government

has amended the liquor policy by inserting clause No.70, in order

to compensate the loss to the licensee the period of the liquor

contract has been extended upto 31.05.2021 due to the Covid-19

situation. As per clauses 70.1 and 70.2 formula was prescribed for

the determination of annual license fees as well as Minimum

Guaranteed Payable Excise Duty. In consequence of the said

amendment, the State Government has issued a circular dated

23.05.2020, to all the District Collectors.

9.

The petitioner submitted an application seeking an

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extension of liquor license till 31.05.2021. Vide order dated

24.06.2020, the Assistant Excise Commissioner determined the

annual license fees as well as the Minimum Guaranteed Excise

Duty amount payable by the petitioner and communicated it to

the petitioner. The petitioner continued to operate the liquor shops

as per restructuring annual license fees and Minimum Guaranteed

Payable Excise Duty determined by the Assistant Excise

Commissioner vide order dated 24.06.2020.

10.

The Collector has again declared the