[2025:RJ-JP:32330-DB]

HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Civil Writ Petition No. 7820/2007 M/s Winsome Breweries Ltd., a Company incorporated under the Indian Companies Act, 1956 having its registered office at 24, Community Centre, East of Kailash, New Delhi-110065 through its Managing Director, Shri Rajendra Kumar Bagrodia S/o Shri M.P. Bagrodia.

----Petitioner Versus

1.Board of Revenue for Rajasthan at Ajmer.

2.State of Rajasthan through Secretary to Government, Government of Rajasthan, Finance (Excise) Department, Secretariat, Jaipur.

3.Commissioner Excise, Government of Rajastan, Udaipur.

4. District Excise Officer, Excise Department, Alwar.

----Respondents For Petitioner(s) : Ms. Alankrita Sharma For Respondent(s) : Mr. Jaivardhan Joshi with Mr. Lalit Bhardwaj on behalf of Mr. Bharat Vyas (Sr. Adv.) AAG HON'BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON'BLE MR. JUSTICE SANJEET PUROHIT

JUDGMENT

RESERVED ON :: 13/08/2025 PRONOUNCED ON :: 28/08/2025 (Per Hon’ble Mr. S.P. Sharma, J.)

THE BRIEF FACTS :

1. The petitioner-Company is stated to have a beer brewery situated at District Alwar. It has been granted three licenses by the Excise Commissioner of brewery, bonded warehouse and bottling since May-June, 1996. The said licenses have been renewed from time to time.

2. The process of manufacturing beer is regulated by the terms and conditions of the license. An Excise Inspector, or any such Officer is required to hold the charge of the brewery, along with supervisory staff for the purpose of supervision. For this purpose, rent-free residential quarters are to be provided at the brewery for them. The beer is stored in mash tuns and other vessels which are gauged by the Officer In-charge and the licensee showing the total capacity of each vessel. As per Rule 28 of Rajasthan Brewery Rules, 1972, the Officer Incharge supervises the material which is being used for the purpose of brewing of beer and the entry of any material is with the permission and sanction of the supervisory staff. The rules also provided restrictions from removing beer from the brewery, until the duty imposed under Section 28 of Rajasthan Excise Act, 1950 has been paid or bond has been executed by the brewer for export of beer outside the State from the brewery. The removal of beer is only allowed on an application being moved in terms of Rule 45 of Rajasthan Brewery Rules, 1972, whereafter a pass is issued by the Officer Incharge of the Excise Department. The accounts of brewery and stock of beer are required to be maintained in terms of Rule 53 of Rajasthan Brewery Rules, 1972. 3. It is stated that the petitioner had lodged complaints against one Excise Guard in the year 1997 and the same was taken as a front by the Department, which stopped the production by the petitioner-Company and directed for a physical verification of the stocks. Inspection of the stocks was conducted on 22^nd December, 1997 and a noting was drawn of 4179 beer cases lying in excess. The petitioner submitted objection to the Inspector, whereafter on 25^th December, 1997, inspection was conducted afresh and the total beer cases reported in excess were 1522.

4. On the basis of the excess beer, the Department issued an order on 30^th December, 1997, prima facie holding violation of various excise provisions and suspended the licenses till further orders, in terms of Section 34 of Rajasthan Excise Act, 1950. On 31^st December, 1997, the Assistant Excise Officer seized the stock and closed the factory and the Excise Commissioner imposed a penalty of Rs.9,68,388/- vide the order dated 10^th February, 1998. 5. The petitioner preferred an appeal against the imposition of penalty, and the Board of Revenue vide its order dated 07^th May, 2003, allowed the appeal and set-aside the order of the Excise Commissioner dated 10^th February, 1998. The Board further held the suspension to be wholly illegal and declared the penalty as unjustified. It is stated that at the time of suspension and cleara